BYD e6, an all-electric MPV manufactured by BYD Auto. Photo: Wikimedia Commons

Chinese electric carmaker BYD Auto, which is backed by U.S. business magnate Warren Buffett, recorded a year-on-year net profit decrease of 45.3% over the first three quarters of 2018, The Paper reported.

The company recorded a net profit of 1.527 billion yuan, while revenue was 88.981 billion yuan, a rise of 20.35% from a year earlier.

It is worth noting that from the first quarter of this year, BYD’s net profit growth rate began to fall sharply. In the previous announcement, BYD attributed the profit contraction to the decline in government subsidies for electric vehicles.

BYD said that in the fourth quarter, its new energy vehicle business is expected to maintain its strong growth, driving the company’s earnings and fostering a quick recovery.

The new government policy released earlier stipulated that pure electric vehicles heading to the market between February and June could only receive 70% of the subsidy distributed in 2017.