# Automotive Profitability

The End of the Race to the Bottom: Why China’s EV Giants are Pivoting to Profitability

China's leading EV manufacturers are shifting focus from aggressive market share expansion to profitability as margins hit historic lows. Through internal brand consolidations and the reduction of retail incentives, firms like Changan and Xiaomi are attempting to shore up cash reserves to fund expensive R&D in AI and autonomous driving.