Transportation
BYD Dominance Is Taking a Toll on Smaller Chinese EV Rivals
- BYD reports another bumper profit while Li Auto disappoints
- China’s EV industry set for consolidation as weak firms falter
BYD’s rise to become the dominant force in China’s auto market comes amid a broad slowdown in EV demand globally.
Photographer: Valeria Mongelli/BloombergThis article is for subscribers only.
Chinese electric car maker BYD Co.’s relentless growth is squeezing out smaller rivals, with Li Auto Inc. joining fellow upstart Xpeng Inc. in releasing disappointing earnings.
In a stark highlight of their contrasting fortunes, BYD on Wednesday posted a 33% jump in second-quarter profit, while around the same time Li Auto posted a bigger-than-estimated 52% drop in earnings — sending its US-listed shares tumbling. Xpeng last week forecast third-quarter revenue well below analyst expectations amid a bruising price war in China. Neither Li Auto or Xpeng have managed to break into the top 10 largest Chinese EV makers by sales.