BYD Co. reported a 42 percent drop in annual earnings, with the electric vehicle maker getting hit by an industrywide slump in the world’s biggest EV market.
Billionaire Wang Chuanfu’s BYD had net income of 1.61 billion yuan ($227 million) for 2019, according to a statement from the company Tuesday. Analysts predicted net income of 1.67 billion yuan on average. Revenue last year fell 1.8 percent.
Car sales in China are falling for a third year as the coronavirus outbreak exacerbates a slump kicked off by a slowing economy, trade tensions and stricter emission regulations. Shenzhen-based BYD, China’s biggest maker of vehicles powered by alternative energy for the past six years, has also been hurt by China’s reductions in EV subsidies.
To combat the slump and widen revenue sources, BYD is expanding beyond cars. The company said this week it will start offering a full suite of EV components to rivals and aspiring auto manufacturers, including electric-car batteries and powertrains.