Gotion High-Tech said its first-half earnings are set to rise sharply, a result that could matter for battery investors and electric-vehicle supply chains worldwide. The Chinese maker cited stronger sales, product upgrades, overseas expansion, and gains from stock investments, while warning the figures are still preliminary and unaudited.

China's electric vehicle market is entering a harsher phase. Consumers are replacing cars at an unusually rapid pace, yet automakers are struggling to convert that demand into sustainable profits as vehicle prices fall and battery materials and automotive chips become more expensive.

China's auto market remained volatile in the second quarter of 2026, even though new energy vehicles (NEV) and emerging brands continued to gain market share. The ongoing price slashing and hypercompetitive "involution" have disrupted production schedules across the upstream supply chain, while reductions to NEV subsidies have caused consumers to adopt a wait-and-see approach, and both domestic brands and joint ventures with leading foreign automakers alike have seen drastic declines. Moreover, these broader trends have led to declining revenues for Taiwanese auto parts makers.

Six-inch silicon carbide (SiC) substrates, a third-generation semiconductor product that has faced oversupply and falling prices for the past two years, have clearly bottomed out and are even starting to recover as capacity remains constrained and demand emerges across multiple sectors. Semiconductor distributors say supply is now tight, and customers who want to buy more must pay more, with new orders becoming increasingly hard to absorb.