China’s CATL, the world’s biggest electric vehicle battery manufacturer, has suffered its first fall in quarterly profits in almost two years amid slowing growth in demand for EVs and intensifying competition.In mixed results posted in a filing to the Shenzhen Stock Exchange on Friday, CATL also reported lower-than-expected full-year revenues, but an improved gross profit margin on its core battery business for 2023.
The results from the Tesla supplier, which is based in China’s south-eastern province of Fujian, offer a warning about the impact of softening demand for EVs in the world’s largest auto market.
Chinese sales of pure battery-powered vehicles and plug-in hybrids rose 36 per cent last year, down from a 96 per cent increase in 2022, according to data from the China Passenger Car Association.