Chinese companies, both private and state-owned, continue to benefit from generous government subsidies and grants: In the case of electric vehicle maker BYD, state support in 2018 was nearly equal to the company's bottom line. © Reuters

For some Chinese companies, generous state subsidies make up for losses

Electric vehicle makers weather tough year thanks to government largesse

KENJI KAWASE, Nikkei Asian Review chief business news correspondent

April 24, 2019 13:57 JST

HONG KONG/TOKYO -- For the Chinese auto industry, 2018 was a triple whammy.

Wang Chuanfu, founder of electric car and battery maker BYD, neatly summed up the industry's problems in the company's latest annual report: "international trade friction, slowing macroeconomic growth and reduction in tax incentives for new energy vehicle buyers."