BYD profit hurt by slumping EV sales
BYD Co. reported a 29 percent drop in net profit in the first quarter as sales of electric vehicles in China slumped.
For the period, BYD's net profit was 606 million yuan ($88 million).
The company also predicted that net profits in the first six months would fall up to 32 percent as the government reduces subsidies for EVs.
If so, that would be BYD's biggest drop in first-half profits since 2012.
"The scale-back of subsidies for electric vehicles put pressure on profit, while competition will still be intense in traditional vehicle sectors in the second quarter," BYD said in a statement.
Industry sales of plug-in hybrid and EVs fell nearly 5 percent in January to March compared with the same period a year ago, China's Association of Automobile Manufacturers said.
BYD's weaker earnings are a big shift from massive profit growth over the last two years. From 2014 to 2016, net income rose more than ten-fold, as generous government subsidies spurred demand for EVs.
But EV sales wavered this year after the central government cut subsidies by 20 percent.
The company also predicted that net profits in the first six months would fall up to 32 percent as the government reduces subsidies for EVs.
If so, that would be BYD's biggest drop in first-half profits since 2012.
"The scale-back of subsidies for electric vehicles put pressure on profit, while competition will still be intense in traditional vehicle sectors in the second quarter," BYD said in a statement.
Industry sales of plug-in hybrid and EVs fell nearly 5 percent in January to March compared with the same period a year ago, China's Association of Automobile Manufacturers said.
BYD's weaker earnings are a big shift from massive profit growth over the last two years. From 2014 to 2016, net income rose more than ten-fold, as generous government subsidies spurred demand for EVs.
But EV sales wavered this year after the central government cut subsidies by 20 percent.
