Bloomberg — Revenue at the world’s largest electric car company, BYD, fell short of market estimates in the first quarter after aggressive price cuts hurt margins.
Net profit increased 11% compared to the same period last year, to 4.57 billion yuan (US$631 million), the Chinese automaker reported on Monday (29).
Revenue grew 3.9% to 124.94 billion yuan. This fell far short of analyst estimates of 132.53 billion yuan. BYD surpassed Tesla in sales in the fourth quarter of 2023.
read more: How BYD and other Chinese brands rose to dominance in electric cars in the country
After ousting Volkswagen as the best-selling car brand in China last year, BYD slashed prices across its entire product line to protect its position. Its cheapest model, the popular Seagull hatchback, now starts at 69,800 yuan, or less than $10,000.
The company has also decided to enter the premium and ultra-luxury segment, last week revealing four new models and a concept in the higher-priced Denza, Yangwang and Fang Cheng Bao models at the Beijing Motor Show.
BYD’s Hong Kong-listed shares have recovered from a 19% drop in January and are largely unchanged year-to-date.
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