Great Wall Motor Co., China’s largest light-truck maker, estimates net profit dropped 59 percent to 1.53 billion yuan ($222 million) in the first six months of the year.
The company blamed higher customer incentives, marketing expenses and r&d outlays for the profit slump.
In the first half, Great Wall’s sales rose 4.7 percent to 493,538 vehicles. The tally includes nearly 400,000 crossovers and SUVs as well as 64,878 pickups.
Because of lower profit margins on vehicles sold, first-half revenue dropped 15 percent to 4.14 billion yuan.
Great Wall, citing the challenges facing the Chinese economy and the domestic auto industry, said it also lowered its sales target for 2019 to 1.07 million from 1.2 million previously.
Great Wall is the second major private Chinese carmaker to report a sharp decline in first-half profits.
Geely Automobile Holdings, China's largest domestic carmaker, warned this month its net profit in the first half dropped about 40 percent from 6.7 billion yuan a year earlier, due to a "greater-than-expected decrease" in sales and efforts to reduce dealership inventories.
In the first half, Geely's deliveries fell 15 percent to 651,680 cars and light trucks.