Foreign media: The three Chinese listed automakers that made the most profit last year—Geely, Chery, and BYD—experienced double-digit declines in first-quarter net profits this year, reflecting the pressure faced by the domestic market after the withdrawal of purchase tax incentives.
Geely Auto disclosed that its net profit dropped 27% year-on-year to RMB 4.17 billion (approximately USD 610 million) from January to March this year, despite a 15% year-on-year increase in revenue to RMB 83.8 billion during the same period, driven by export growth and strong sales of premium models, which set a record high for the same period in history. Total sales for the first quarter rose only slightly by 1% year-on-year to 700,900 units, with the decline in profits primarily attributed to foreign exchange losses.
The outlook for auto exports remains relatively optimistic and could serve as a crucial support to offset weak domestic sales, but it will still take time for consumer confidence at home to recover in the short term.
China's new energy vehicle purchase tax was fully waived last year (i.e., exempting the 10% vehicle purchase tax), but this year it has been adjusted to a 5% levy, reverting to a full 10% in 2028.
Original article: toutiao.com/article/1863909146102792/
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