BYD shares have taken a tumble after the the company warned that first-half profit may have fallen by as much as 95%.

Net income for the six months ended June 30 may range from 121.1m yuan to 363.2m yuan, dropping from 2.42bn yuan a year earlier, BYD said in a preliminary earnings statement.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

The company warned that the end of tax incentives for small cars in China has reduced market demand this year. BYD’s deliveries dropped 8% last month to 32,515 vehicles as demand slowed.

BYD posted an 84% decrease in first-quarter profit.

“There was a decline in automobile sales volume and revenue as a result of cancellation of preferential tax policy on passenger vehicles with emission below 1.6 litres and intensifying market competition,” BYD said in the statement.

BYD has also reported slower business in its other business sectors.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Just Auto Excellence Awards - The Benefits of Entering

Gain the recognition you deserve! The Just Auto Excellence Awards celebrate innovation, leadership, and impact. By entering, you showcase your achievements, elevate your industry profile, and position yourself among top leaders driving automotive industry advancements. Don’t miss your chance to stand out—submit your entry today!

Nominate Now