China's CATL, the world's largest EV battery maker, reported net profit growth of 14.5% to ₹175.6 billion ($21.2 billion) in the third quarter, marking a significant deceleration from previous performance. According to a stock exchange filing on Tuesday, this growth rate fell well below analyst estimates of 41.2% increase based on LSEG SmartEstimate data. The third-quarter profit growth represents the slowest pace in nearly two years, following a 36.5% rise in the second quarter, as reported by The Economic Times.
Revenue climbed 58.6% year-on-year to ₹1,341.3 billion ($165.2 billion), though this figure also undershot forecasts for a 60.2% increase after growing 56.9% in the previous quarter. As reported by The Economic Times, the revenue performance reflects the challenging competitive environment facing the EV battery market leader. The company's revenue growth rate has been consistently strong but has shown some moderation compared to previous quarters.
According to industry data cited by The Economic Times, CATL maintained its dominance in the global EV battery market, accounting for 39.4% of global EV battery usage in the first eight months of the year, up from 37.7% a year earlier. However, the company faced intensifying competition from second-ranked BYD, whose share slipped to 15.1% from 17.1%. In China's domestic market, CATL's share of the power battery installation market fell to 40.9% in September from 49.8% in January, while BYD increased its share to 21.1% from 17.4%.
Despite the profit growth challenges, CATL announced strategic initiatives to expand its business portfolio. As reported by The Economic Times, the company unveiled a new generation of batteries for heavy-duty trucks and announced plans to expand its battery-swapping network. The company has also broadened its supplies to overseas automakers, supporting its global expansion strategy. CATL expects energy storage to contribute half of its global revenue by 2030, up from about a quarter currently, as reported by Reuters in June.
The slower profit growth comes as China's auto sales growth cooled, with the domestic market extending a 12-month downturn in September. According to The Economic Times, exports continued to support industry growth as manufacturers expanded abroad. The competitive pressures in the EV battery market, combined with cooling domestic demand, have created a challenging operating environment for CATL despite its continued market leadership position.
