Price cuts in China penalize BYD’s revenue. They grew at the slowest rate in 4 years – Automotive

Chinese automaker BYD saw first-quarter revenue grow at the slowest pace in four years, according to Bloomberg. In total, sales were in the 124.94 billion yuan (16.07 billion euros at current exchange rates)which represents an increase of 3.9% compared to the same period of the previous year.

The value, which was below the 132.53 billion yuan (17.04 billion euros) predicted by analysts, reflects the price cut it carried out on most of its models in the Chinese market. To accompany the economic slowdown, dozens of car manufacturers launched a price war in China, the largest car market in the world.

The Chinese manufacturer sold around 620 thousand units of electric passenger and hybrid vehicles, which translates into an increase of 14% compared to the first quarter of the previous year.

Profits stood at 4.57 billion yuan (587.7 million euros), an annual increase of 11%.

After surpassing Volkswagen as the biggest seller in China last year, BYD has intensified efforts – such as lowering car prices – to strengthen its position. Furthermore, it is also taking steps to position itself in the “premium” market, having announced four new models last week.

In 2023, BYD recorded a record profit of 30.04 billion yuan (3.86 billion euros), a value that compares with 16.6 billion yuan (2.14 billion euros) in the previous year. last year.