EV war in China: BYD profits drop sharply

Profits of China’s well-known electric car maker BYD have fallen, causing its shares to drop by 8%. The reason is price competition in the market.

BYD announced that its net profit for April–June was 6.4 billion yuan (around 900 million dollars). This is 30% less compared to the same period last year. The company said that intensified price competition is negatively affecting the whole sector.

BYD is competing with rivals such as Tesla, Nio and XPeng. To attract buyers, they are also lowering prices.

Over the past two years, car prices in China have dropped by an average of 19%. Experts say this situation may lead to car overproduction in the future.

Nevertheless, BYD remains the world’s largest electric car manufacturer and continues to grow.

Oqiljon Muhammad

Editor of «ZAMIN.UZ»