Beijing (AFP) – Chinese electric vehicle giant BYD said on Thursday its third-quarter profit had slumped by 33 percent year-on-year, with sluggish domestic consumption piling pressure on the carmaker as it looks to expand overseas. BYD — which adopts the English slogan “Build Your Dreams” — has emerged in recent years as the clear leader in China’s highly competitive EV market, which is the largest in the world.
The carmaker said its net profit for the third quarter was 7.8 billion yuan ($1.1 billion), a decrease of 32.6 percent compared to the same period last year and its second consecutive quarterly decline. The Shenzhen-based firm recorded revenue of 195 billion yuan over the same period, a slight decrease of 3 percent year-on-year.
China’s EV industry is world-leading but a cutthroat domestic market has weighed on companies’ profitability, with many including BYD turning to overseas markets in response. Scrutiny of the EV market is also growing, with a top industry group in May rebuking Chinese automakers for fueling a price war, a week after BYD announced sweeping trade-in discounts.
However, BYD’s overseas bid appears to be gathering pace. In September, it sold more than 13,000 units in European Union countries, a year-on-year increase of 272.1 percent, according to a report by the European Automobile Manufacturers’ Association (ACEA).
The recent slowdown comes after a period of sustained, intense growth, and its profit in the first quarter was a record for the company in that reporting period. In 2024, its annual revenue surpassed that of its American rival Tesla, and crossed the symbolic $100 billion mark.
© 2024 AFP
