BAIC Motor Expects Substantial Drop in 1st Half Net Profit

By Joanne Chiu Features Dow Jones Newswires

BAIC Motor Corp.'s (1958.HK) net profit in the first half is expected to fall by 60% from a year earlier, in part due to intensifying competition in China's passenger car market.

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The Chinese car maker said after markets closed Tuesday that the earnings weakness was also due to the overall sluggish demand for Korean cars in the first half that resulted in lower sales of its Beijing Hyundai and Beijing car brands during the period.

BAIC Motor, which counts Germany's Daimler AG (DAI.XE) as its strategic investor, has a joint venture with South Korea's Hyundai Motor Co.

Write to Joanne Chiu at joanne.chiu@wsj.com

(END) Dow Jones Newswires

August 15, 2017 20:03 ET (00:03 GMT)