Hangzhou-based Geely, the country’s second-largest carmaker behind BYD, said in a filing on Wednesday that its net profit for the January-March period slid 27 per cent year on year to 4.17 billion yuan (US$610 million).
The profit slump came even as growth in exports and sales of high-end models boosted first quarter revenue by 15 per cent from a year earlier to 83.8 billion yuan, an all-time high for the period.
“Sales volume in the domestic market has not yet recovered after the phasing out of the purchase tax incentives,” said Gui Shengyue, Geely’s CEO and executive director, during an earnings call on Wednesday.
Geely attributed its profit decline mainly to losses in foreign exchange, but its total sales volume for the quarter inched up only 1 per cent from a year earlier to 700,940 units.