Chinese EV battery giant CATL reports jump in profits
by AFP Staff Writers
Beijing (AFP) Oct 18, 2024
Chinese electric vehicle battery behemoth CATL reported a 26.0 percent jump in third-quarter profits on Friday but still fell short of analyst expectations.
Founded in 2011 in the eastern coastal Chinese city of Ningde, CATL produces more than a third of the EV batteries sold worldwide.
They are used in models from a long line of foreign manufacturers including Mercedes-Benz, BMW, Volkswagen, Toyota, Honda and Hyundai.
A drop in the cost of raw materials used to make batteries has triggered a price war among players in the sector, weighing on sales.
In the July-September quarter, CATL’s net profit rose 26.0 percent year-on-year to 13.14 billion yuan ($1.85 billion), according to a statement released on the Shenzhen Stock Exchange.
However, that figure still fell short of Bloomberg estimates of 14.7 billion yuan.
During the same period, CATL’s sales fell by 12.5 percent year-on-year, to 92.28 billion yuan.
CATL is building its second European factory in Hungary after launching its first in Germany in January 2023.
The company has ridden robust financial support from Beijing, which has prioritised the development of domestic high-tech industries that it views as strategically advantageous.
At home, the firm’s success in recent years has been galvanised by rapid growth in the domestic market.
isk/ssy
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