slumps

Chinese electric vehicle maker BYD’s profit slumps after subsidy cuts

FILE PHOTO: A logo of BYD is painted inside an assembly line of the automobile maker in Shenzhen, China May 25, 2016. REUTERS/Bobby Yip

BEIJING (Reuters) – Chinese electric vehicle maker BYD Co Ltd (002594.SZ), (1211.HK) reported on Tuesday a 42% drop in 2019 profit, saying cuts in government subsidies and emissions rules changes had hit demand in the sector.

BYD, which is backed by U.S. investor Warren Buffett, said its net profit for 2019 totalled 1.61 billion yuan ($227 million), while its revenue dropped 1.78% to 127.74 billion yuan last year.

China cut subsidies for new energy vehicles (NEV), which include battery electric, plug-in hybrid and hydrogen fuel cell vehicles, last year, making the final product more costly for carmakers.

After that NEV sales fell for nine straight months. However, last month China said it would extend subsidies for new energy vehicles and extend NEV’s

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