BYD shares slide as China’s EV price war hits profits
Shares in Chinese electric vehicle maker BYD slid by as much as 8% on Monday after it reported a drop in profit because of a price war in China’s car sector.
The carmaker had on Friday reported that its net profit fell to 6.4bn yuan ($900m; £660m) between April and June, down 30% from a year earlier.
BYD said in its filing that “increased price competition” among China’s EV brands had impacted the industry.
The Shenzhen-based manufacturer is facing an increasingly crowded market, competing against local rivals Nio and XPeng and US carmaker Tesla, which have all slashed prices to draw buyers.
The carmaker’s stock fell at the open in Hong Kong on Monday but recovered slightly throughout the day.
Competition in China’s car sector has reached a…
