China EV makers' profitability mixed amid price war, trade barriers

HONG KONG -- Chinese EV makers' profitability levels were mixed in April to June, as they faced a fierce price war at home and rising trade barriers in developed economies, with champion BYD seeing its gross margin fall to 18.69% from 21.88% in the previous quarter.

The figure for Li Auto, one of the top five sellers domestically among Chinese EV brands, fell to 19.5% from 20.6% in the same period, which the company said was due mainly to a "different product mix" without elaborating. The company said in a conference call with analysts, however, that it believes its gross margin will recover to more than 20% in the third quarter.