BYD Co Ltd, China's leading new-energy vehicle maker, said its net profit tumbled 23.8 percent to 1.72 billion yuan (1 million) in the first six months, according to the company's half-year financial report yesterday.
The profit decline is due to reduction in government subsidies on new-energy vehicles and fierce market competition, the company said.
In the first half of 2017, BYD's revenue amounted to 43 billion yuan, up 0.16 percent year on year. Revenue generated by the automobile sector fell 4.1 percent to 22.4 billion yuan, according to the company.
BYD said that sharp cuts in government subsidies on new-energy vehicles and changes to what types of vehicle that qualify for subsidies had impacted on the new energy vehicle market.
The company also faces increasing market competition in the new-energy vehicle market, according to the report. Credit rating agency Fitch Ratings said in a report that price competition between domestic brands is likely to intensify this year.