CATL profit growth slows as EV battery competition intensifies

CATL’s third-quarter profit rose 14.5% to 21.2 billion yuan, sharply below analysts’ expectations as Chinese EV sales cooled and battery competition increased.

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Oct 21, 2026 - 11:49

Oct 21, 2026 - 12:08

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Illustrative battery-production line photograph from CATL; not the announced financial result or battery-swapping agreement. Photo: CATL

CATL profit growth slows as EV battery competition intensifies

CATL, the world’s largest electric-vehicle battery maker, reported slower third-quarter profit growth as competition intensified and China’s auto-sales expansion cooled. Net profit rose 14.5% year on year to 21.2 billion yuan ($3.17 billion), according to a stock-exchange filing, well below the 41.2% increase analysts had expected.

Revenue climbed 58.6% to 165.2 billion yuan, also below forecasts for 60.2% growth. The result followed a 36.5% profit increase in the second quarter and marked CATL’s slowest quarterly profit growth in nearly two years. The company on Tuesday unveiled a new heavy-duty-truck battery generation and plans to expand its battery-swapping network.

Global lead, domestic pressure

CATL’s share of global EV battery usage reached 39.4% in the first eight months, up from 37.7% a year earlier, while BYD’s share fell to 15.1%. In China, however, CATL’s power-battery installation share fell to 40.9% in September from 49.8% in January; BYD rose to 21.1% from 17.4%. Overseas automaker supply and energy storage offer growth routes as China’s domestic auto market endures a 12-month downturn.

Image: CATL official website.