Currently, the charging station industry is facing significant profitability challenges. A recent survey shows that over 80% of operators are operating at a loss. Even leading companies, after deducting equipment depreciation, site rent, and operational costs, can only earn four cents per kilowatt-hour. The industry is expanding rapidly; by the end of February 2026, the number of charging facilities in China has exceeded 21 million units, nearly a 50% year-over-year increase. Public charging stations number over 4.8 million, private charging stations exceed 16 million, with a vehicle-to-charging pile ratio of approximately 1:1.

In some regions, there are many charging stations but relatively few vehicles. Especially for many low-power and older charging stations, utilization rates are less than 10%. Competition in the market is quite fierce. In Qingdao, Shandong, there is a small operator that earned 500,000 yuan in 2020, but by 2023, it dropped to 80,000 yuan, with profits only around 60,000 yuan. Even more concerning is that mainstream car and battery companies have entered the industry. Companies like BYD, NIO, and CATL treat charging and swapping as supporting services for vehicle sales, not relying on charging revenue but instead focusing on large-scale customer acquisition and retention. NIO has invested over 20 billion yuan in swapping and charging infrastructure, with more than 8,000 swapping stations built, which has squeezed the survival space of third-party operators.
Technological iteration is one thing; the update speed of charging stations is quite fast. Before 2020, charging stations with power ranging from 60 to 120 kW were common, but now they are being replaced by higher-power equipment. New