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BackHotai Auto's profit increased by 40% in the first half of the year. China's investment was wiped out
Hotai Auto's profit increased by 40% in the first half of the year. China's investment was wiped out
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自由时报52 minutes agoBusiness2 min readChinaView original

Hotai Auto's profit increased by 40% in the first half of the year. China's investment was wiped out

Hetai cartoyotaLexus

Quick Look

  • In the first half of 2026, Hotai Auto's domestic profits increased significantly by more than 40% to 13.759 billion yuan due to the hot sales of its Toyota and Lexus brands.
  • However, Hotai Automobile Investment, which coordinates China's layout, almost all of its distribution bases in Shanghai, Nanjing, Tianjin, Chongqing, and Qingdao suffered losses, with a total net loss of 138 million yuan.

AI-generated summary

Why It Matters

Hotai Auto is Taiwan's leading automobile dealer, representing the Toyota and Lexus brands. In recent years, it has actively deployed in the Chinese market, but due to the impact of internal competition, the performance of its Chinese distribution base has been poor.

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[Reporter Gao Jiahe/Reporting from Taipei] Hotai Auto has become the dominant player in Taiwan's auto market in the domestic market with its dual brands of Toyota and Lexus. In the first half of this year, its overall profit increased significantly by 40%. However, its investment in China's business could not escape the blow of "involution", and almost all of its western distribution bases have paid off.

According to Hotai Auto's consolidated financial report for the first half of 2026, with the strong support from its domestic industry and subsidiaries such as Herun Enterprises, the group's overall net profit after tax reached 13.759 billion yuan, a significant increase of more than 40% from the 9.73 billion yuan in the same period last year; and "Hetong Automobile Investment", the holding company that coordinates China's layout, suffered a misfortune in the first half of the year, with an overall net loss of 138 million yuan for the period.

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The dealers owned by Hetong Auto Investment all over China can be said to be "miserably green". Shanghai Heyu Toyota, the main stronghold, had a net loss of 15.88 million yuan for the current period; Shanghai Heling, which is responsible for the Lexus brand, also had a net loss of 21.46 million yuan for the current period.

In the Jiangsu region, Nanjing Hezhan Automobile's net loss for the current period reached 28.23 million yuan, and Hotai Auto recognized an investment loss of 19.76 million yuan based on its shareholding ratio. In addition, iconic dealerships including Tianjin Binhai New Area and Ling Lexus (net loss of 16.4 million yuan), Chongqing Yudu Toyota (net loss of 27.82 million yuan), and Qingdao and Ling Lexus (net loss of 10.17 million yuan) have also fallen into losses.

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What to Watch

AI outlook — possibilities, not facts

  • Hotai Che will re-evaluate China's return on investment in the next few quarters

    Likely · Within months

Open Questions

  • Will Hetong Auto Investment adjust its China layout strategy?
  • Can Taiwan’s domestic market growth continue to offset China’s losses?
  • Will Hotai Che consider divesting or reducing its business in China?

Related Topics

Hetai car
PeopleGao Jiahe
OrganizationstoyotaLexusHetong Automobile Investment
PlacesTaiwanChinaShanghaiNanjing
TopicstoyotaLexusHetong Automobile InvestmentShanghai Heyu ToyotaShanghai and LingNanjing Hezhan Automobile
This article was originally published by 自由时报.

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