On Monday ( Apr 29 ), a major Chinese electric carmaker, BYD reported lower-than-expected revenue for the first quarter of 2024 as a result of an aggressive domestic price war and Western regulatory pressures that affected the company’s growth.
BYD posted an operating revenue of 124.94 billion yuan ( US$ 17.25 billion ) for the first three months of the year, up 3.97 per cent from a year ago, according to a stock exchange filing.
Researchers at Bloomberg had predicted a 132.53 billion rmb increase in monthly income.
As a price war is still being waged in China, the nation’s largest automotive industry, the Shenzhen-based organization is rapidly expanding globally, including into Southeast Asian nations but also into countries further afield in Latin America and Europe.
BYD overtook Elon Musk’s Tesla in the third quarter of 2023 to become the country’s best seller of electric cars. In the first third of this year, Tesla regained that position, but BYD continues to dominate in its native business.
The Chinese carmaker made a 30 billion yuan profit in the last year, which is unprecedented.
Its earnings in the first quarter was 4.57 billion yuan, up 10.62 per share from a year ago, BYD said on Monday.
BYD reported that “in the second quarter, there were increases in advertising and show expenses, depreciation and amortization, as well as a rise in “material consumption.”