Chinese electric vehicle (EV) battery giant, CATL on Tuesday released projections for a net profit growth of up to 48.1% for 2023. This forecast indicates a significant deceleration compared to the previous year, attributed to challenges such as diminished demand and intense competition in the market.
According to a filing on the Shenzhen Stock Exchange, CATL anticipates a net profit for 2023 ranging between 42.5 billion yuan and 45.5 billion yuan ($5.92-6.34 billion), reflecting a 38.3-48.1% increase compared to the previous year. This contrasts with the strong 92.89% net profit surge recorded in 2022.
On Monday, BYD, China's second-ranked electric vehicle battery maker, forecasted a 2023 net profit increase of up to 86.5%. This growth rate, however, is notably slower than the 446% seen in 2022.
According to data from the China Automotive Battery Innovation Alliance (CABIA), CATL, the top EV battery maker in 2022, contributed to 43.11% of its home market in terms of battery installations in China-made EVs last year. This marked a decline from the 48.2% share recorded in 2022.
By contrast, BYD and third-placed CALB experienced a collective rise in market share, reaching 35.7% in 2023 compared to the previous year's 29.98%, as indicated by CABIA data. This suggests a shifting landscape in the competitive dynamics among EV battery manufacturers.
Beyond China, there are challenges, as evidenced by the scrutiny faced by CATL's partner, Ford (NYSE:F), for its planned Michigan battery plant.
U.S. lawmakers have criticized the use of technology supplied by CATL in the project, highlighting potential headwinds for the company beyond its domestic market.