Despite a July slowdown, BYD retains its lead in China’s competitive EV market.
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Hong Kong-listed shares of BYD fell by as much as 7.87% on Monday after the Tesla rival reported a quarterly profit drop amid an aggressive price war across its domestic industry.
The Chinese electric vehicle maker on Friday reported net profits of 6.36 billion yuan ($891 million) for the June quarter, down about 30% from a year earlier, according to data from LSEG.
The results came despite an expansion in overseas sales, which helped the company’s revenue grow 14% year over year to about 201 billion yuan.
The company said in its filing that “increased price competition and frequent occurrences of excessive marketing” in China’s EV space had ” exerted an adverse periodic impact on the development of the industry.”
In China, the average car retail price has fallen by around 19% over the past two years to around 165,000 yuan ($22,900), according to a recent Nomura report, citing industry data from Autohome Research Institute.
