BYD Makes Gains in Battery Sector as CATL’s Domestic Market Share Declines and Performance Slows

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The third-quarter net profit growth rate of Ningde Times (, hereinafter referred to as CATL), China’s largest electric vehicle battery manufacturer, recorded its lowest level in nearly two years due to the slowing pace of Chinese auto sales and intensifying competition in the battery market.

According to a public disclosure on the Shenzhen Stock Exchange, CATL’s third-quarter net profit rose 14.5% year-on-year to 21.2 billion yuan (approximately $3.17 billion). This figure significantly fell short of the 41.2% growth expected by analysts, as aggregated by LSEG SmartEstimate. The growth rate slowed further following a 36.5% increase in the previous quarter, the second quarter.

Third-quarter revenue increased 58.6% year-on-year to 165.2 billion yuan, though it fell short of the market-expected 60.2% growth. However, it marked a slight rise compared to the previous quarter’s revenue growth rate of 56.9%.

The primary drivers of the slowdown in profitability arethe decline in domestic market share and intensified competition. According to industry data, CATL’s market share in China’s power battery installation market fell from 49.8% in January to 40.9% in September. Meanwhile, competitor BYD expanded its share over the same period from 17.4% to 21.1%, narrowing the gap.

However, overseas market expansion is supporting growth. Based on global electric vehicle battery usage from January to August this year, CATL’s market share reached 39.4%, up from 37.7% in the same period last year. In contrast, BYD, ranked second, saw its global share decline from 17.1% to 15.1%.

Meanwhile, CATL recently unveiled next-generation batteries for heavy-duty trucks and announced plans to expand its battery swap network. Industry observers expect CATL’s energy storage segment, which currently accounts for approximately one-quarter of its global revenue, to expand to about half by 2030.

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*This content was translated by AI.View Original