Chinese battery giant CATL posted sharply slower growth in fourth quarter net profit, after COVID-19 outbreaks and consumer caution hit electric vehicle (EV) demand in the world’s largest auto market, reports Reuters. The world’s largest battery maker’s profit during October to December increased 60.6% from the same period in 2021, according to Reuters calculations based on a company filing. That compares to 130.9% and 164% growth in the third and second quarters, respectively.
EV sales growth in China largely slowed in the fourth quarter as the economy was heavily disrupted by efforts to curb the spread of COVID-19 and then the sudden ending of the virus prevention policy, which unleashed a massive wave of infections across the country.
Tesla, CATL’s largest client by volume, cut output in its Shanghai plant by more than a third in December from November, China Passenger Car Association data showed, as the US automaker grappled with rising inventory.
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