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Automobiles

China's BYD collects $190m in subsidies for electric cars

Automaker's finances strained after Beijing cut incentives

BYD's sales of new-energy vehicles have dropped for seven straight months through January. (Photo by Takashi Kawakami)

GUANGZHOU -- BYD, China's leading manufacturer of electric vehicles, recently received 1.34 billion yuan ($191 million) in government subsidies as it grapples with a reduction in incentives and the prospect of a further downturn in sales.

The subsidies, which apply to vehicles sold in 2017, will be used in part to improve cash flow and pay down debt, the company said Monday. The funds are nearly on par with BYD's roughly 1.5 billion yuan in net profit earned during the January-September 2019 period.

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