Falling sales to widen profit gap between China’s EV makers and battery suppliers

China's electric vehicle (EV) battery suppliers, like CATL, are poised for increased profitability, contrasting with the widening profit gap for EV makers. This divergence is driven by sluggish new car sales and flat vehicle prices, which negatively impact automakers' earnings. Conversely, battery producers benefit from strong demand in the energy storage sector. Analysts anticipate continued investor interest in battery company shares due to their improved financial performance. This situation highlights a growing disparity in financial outlooks within China's EV industry, with battery manufacturers outperforming car assemblers.