Despite a July slowdown, BYD retains its lead in China’s competitive EV market.
Anna Barclay | Getty Images News | Getty Images
Hong Kong-listed shares of BYD slid nearly 8% Monday after the Chinese electric vehicle maker reported a sharp drop in quarterly profit amid an aggressive price war across its domestic industry.
The Tesla rival on Friday reported net profit of 6.36 billion yuan ($891 million) for the April-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.
BYD’s profitability has been harmed by the breakout of yet another discount war in China last quarter — something that has become a common occurrence in the space.
The company said in its mid-year earnings 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.”
Retail car prices in Chin