{"id":32179,"date":"2023-10-20T00:58:53","date_gmt":"2023-10-20T00:58:53","guid":{"rendered":"https:\/\/innodebt.com\/markets\/stocks\/chinas-catl-reports-severe-drop-in-profit-growth-as-ev-demand-weakens\/"},"modified":"2023-10-20T00:58:55","modified_gmt":"2023-10-20T00:58:55","slug":"chinas-catl-reports-severe-drop-in-profit-growth-as-ev-demand-weakens","status":"publish","type":"post","link":"https:\/\/innodebt.com\/?p=32179","title":{"rendered":"China’s CATL reports severe drop in profit growth as EV demand weakens"},"content":{"rendered":"
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\u00a9 Reuters. Chinas CATL reports severe drop in profit growth as EV demand weakens<\/span>
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China’s CATL (SZ:), the leading global battery manufacturer for electric vehicles (EV), announced on Thursday that its third-quarter profits had grown by 10.7%, representing the company\u2019s slowest quarter since the beginning of last year. Management attributes the slowdown to a combination of reduced demand and intensified competition.<\/p>\n

This growth figure stands in stark contrast to the 63.2% profit increase in the previous quarter and the substantial 188.4% surge experienced in the third quarter of 2022.<\/p>\n

Recent data revealed that CATL witnessed a decline in its market share in China during September, reaching its lowest point in over a year, highlighting the challenges the company is grappling with, including heightened competition from smaller competitors and a weakening demand in the world’s largest electric vehicle market.<\/p>\n

“CATL is facing pressure in the near term, given competition from tier-2 battery makers who price their products at a discount to CATL, and weaker-than-expected lithium-ion battery demand,” analysts at Citi said in a note.<\/p>\n

According to data from the China Automotive Battery Innovation Alliance (CABIA), CATL’s market share in terms of battery installations in China-produced EVs plummeted to 39% in September. The lowest market share since June last year and a decline from 45% just three months earlier.<\/p>\n

By contrast, the data indicates that the second-ranked BYD (SZ:) and third-placed CALB <\/span><\/span> (HK:) witnessed a substantial surge in their shipments in China, exceeding 71% in the first nine months of the current year. This growth far outpaced CATL’s comparatively modest 18.8% expansion during the same period.<\/p>\n

CATL’s slower earnings growth is happening as EV sales in China decline, leading to a price war among automakers and putting pressure on battery firms and suppliers to cut costs.<\/p>\n

Last month, Ford Motor (NYSE:), a partner of CATL, announced the temporary suspension of work on a $3.5 billion EV battery plant in Michigan. A decision made in response to mounting concerns among U.S. politicians that the plant could potentially facilitate the flow of U.S. EV tax subsidies to China.<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a9 Reuters. Chinas CATL reports severe drop in profit growth as EV demand weakens China’s CATL (SZ:), the leading global battery manufacturer for electric vehicles (EV), announced on Thursday that its third-quarter profits had grown by 10.7%, representing the company\u2019s slowest quarter since the beginning of last year. Management attributes the slowdown to a combination […]<\/p>\n","protected":false},"author":1,"featured_media":32180,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[37],"tags":[],"class_list":{"0":"post-32179","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stocks"},"yoast_head":"\nChina's CATL reports severe drop in profit growth as EV demand weakens | Innodebt<\/title>\n<meta name=\"description\" content=\"\u00a9 Reuters. 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