China EV battery maker CATL expects weaker earnings growth for 2023
Reuters
Published Jan 30, 2024 06:45AM ET
Updated Jan 30, 2024 09:25PM ET
BEIJING (Reuters) - Chinese electric vehicle (EV) battery giant CATL forecast net profit growth of up to 48.1% in 2023 on Tuesday, representing sharply weaker growth than the previous year as it grappled with slowing demand and stiff competition.
The world's largest EV battery maker has been faced with challenges from smaller rivals and slowing demand in China, which is the largest market for electric vehicles.
CATL expects 2023 net profit of between 42.5 billion yuan and 45.5 billion yuan ($5.92-6.34 billion), up 38.3-48.1% from a year earlier, a Shenzhen Stock Exchange filing showed.
That compares with a 92.89% net profit gain in 2022.
China's second-ranked EV battery maker BYD (SZ:002594), which unseated Tesla (NASDAQ:TSLA) as the top EV maker in sales terms, on Monday forecast its 2023 net profit rose by as much as 86.5%, a much slower pace than the 446% seen in 2022.
Last year, CATL made up 43.11% of its home market, as measured by battery installations in China-made EVs, down from 48.2% in 2022, data from the China Automotive Battery Innovation Alliance (CABIA) showed.
BYD and third-placed CALB saw their combined market share rise to 35.7% in 2023 from the prior year's 29.98%, the data showed.
In a sign of headwinds beyond China, the planned Michigan battery plant of CATL's partner Ford Motor (NYSE:F) has drawn fire from U.S. lawmakers for its use of technology supplied by CATL.
($1 = 7.1787 Chinese yuan renminbi)
(This story has been corrected to say EV battery maker CATL, not EV maker, in the headline)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.