Sales at BYD, China’s largest electrified vehicle manufacturer, fell 17 percent to 30,985 in July after Beijing finished reducing subsidies for EVs and plug-in hybrids.
Deliveries of BYD’s EVs and plug-in hybrids, which have remained strong, dropped 12 percent to 16,567 last month, according to company filings on the stock exchanges in Hong Kong and Shenzhen.
In March, Beijing raised the technology threshold for EVs that qualify for subsidies and halved subsidies for plug-in hybrids, with the goal of phasing out the incentive program by the end of 2020.
But the government also granted a grace period -- from March 26 through June 25 -- during which EVs that fall short of the new technical standards were eligible for 10 percent of the subsidies they previously qualified for.
BYD has stopped introducing new gasoline-powered vehicles to focus on developing new electrified vehicles, and sales of gasoline vehicles keep shrinking, falling 22 percent to 14,418 in July.
In the first seven months, BYD’s cumulative sales slid 1.1 percent to 259,057.
During the period, sales of BYD EVs and plug-in hybrids surged 73 percent to 162,220 while deliveries of gasoline vehicles dropped 42 percent to 96,837.
BYD, based in the south China city of Shenzhen, is partly owned by U.S. billionaire Warren Buffett.