STORY: BYD’s quarterly profit fell for the first time in more than three years.
The Chinese electric vehicle giant said Friday net profit reached just under $895 million in the second quarter.
That was down close to 30% from a year earlier.
BYD’s expansion was hit by a government campaign against price wars.
Beijing has called for a halt to the practice which has hurt profit margins across the industry.
However, revenue was up 14% in the three months to June 30th to $28 billion.
The biggest Chinese rival to Tesla has faced challenges in recent months.
BYD has set a target to sell 5.5 million cars globally this year, but sold 2.49 million in the first seven months, reaching 45% of its goal.
BYD generates nearly 80% of its sales in China.
It saw vehicle sales fall in its home market for the third straight month in July, while production slid for the first time in 17 months.
The automaker has also slowed production and delayed capacity expansions at factories in China.