Geely joins Chery, BYD in profit slide as reduced incentives decimate China car sales

Leading Chinese automakers Geely, Chery, and BYD experienced significant profit declines in the first quarter of the year. Geely Automobile Holdings, the country's second-largest carmaker, reported a 27% drop in net profit to 4.17 billion yuan (US$610 million) for January-March. This profit slump occurred despite a 15% increase in revenue to a first-quarter record of 83.8 billion yuan, driven by strong export performance and sales of premium models. The reduction in government purchase incentives is identified as the primary reason for the decreased profitability across these major Chinese car manufacturers.