BYD, backed by US billionaire Warren Buffet, has ended a joint venture to provide financing for car purchases in China with a unit of France's Societe Generale.

The company signed a CNY500m (US$77m) joint venture with Compagnie Generale de Location d'Equipements (CGL) in June last year to tap growing mainland demand for cars in the world's biggest auto market, AFP reported.

However, in a statement to the Hong Kong stock exchange, BYD said: "CGL is of the view that the automobile market in the mainland China is facing increasing risks."

BYD added that it had a "different evaluation on the potential risk in association with the business and cannot reach consensus".

BYD, which saw first-quarter profit shrink 84% due to increasing costs and falling auto sales, said the decision would not have a significant impact on its financial position and business operations.

BYD reported earnings of CNY266.7m in the three months to 31 March, well below its CNY1.7bn net profit in the same quarter last year. Operating revenue fell 12% in the quarter.

Separately, it told Reuters it sold 32,515 cars in June, down 8% year on year.

June sales were lower than 41,051 units sold in May and 35,400 sold in June last year.