BEIJING - Electric battery giant CATL saw its China market share tumble to the lowest in more than a year in September, data showed, underscoring the challenges it faces from smaller rivals and weakener demand in the world's largest electric vehicle market.
"CATL is facing pressure in the near term, given competition from tier-2 battery makers who price their products at a discount to CATL, and weaker-than-expected lithium-ion battery demand," Citi analysts said in a note.CATL's market share by battery installations in China-made EVs dropped to 39% in September, the lowest since June last year, from 45% three months ago, data from the China Automotive Battery Innovation Alliance showed, as rivals accelerated supplies.
CATL's setback also comes amid weakening EV sales in China that stoked an intense price war among automakers and a subsequent cost reduction pressure on battery firms and other suppliers. CATL, which counts Tesla as its biggest client, is expected to report 14.6 billion yuan in third-quarter net profit, according to one estimate provided by LSEG.