Chinese electric automaker BYD, which is backed by U.S. investor Warren Buffett, on has reported a 41.9% decline in 2019 net profit as China’s EV subsidies slashes hit customer demand.
BYD reported 1.61 billion yuan ($227 million) net profit in the last year, dropping from 2.78 billion yuan in 2018. Its revenue fell 1.78% to 127.74 billion yuan last year, from 130.05 billion yuan a year previously.
The automaker, which has partnerships with Toyota and Daimler’s partner in China, sold 461,399 vehicles in 2019, 11.4% less from a year earlier.
It noted in a stock exchange filing that China’s subsidy cut on electric vehicles and emission rule modifications caused the sales decline.
In 2019, China’s overall auto market declined 8.2% from a year earlier while sales for new energy vehicles, which consists of battery electric, plug-in hybrid and hydrogen fuel cell vehicles, dropped 4%.