BYD struggles in Q1 as Beijing withdraws EV subsidies

China’s biggest electric vehicle company BYD gave investors a scare after posting an 83% fall in net profits for 2018’s first quarter, with further challenges in line for Q2.

The Warren Buffett-backed company also said it expects net profits to fall between 71% and 83% in the first half of the year compared with 2017, Caixin Global reports. It attributed this dramatic fall in profits mainly to the ongoing cutbacks in government subsidies for EV companies in China.

Q1 net profit totalled RMB 102.4 million ($16.17 million), with quarterly revenue at RMB 25 billion – a 17.54% year-on-year increase.