Food For Thought: BYD YOY 30% sales plunge – Total collapse incoming as inventory surges to 138.4 billion yuan.

"A simple calculation shows that this 13.8 billion yuan accounts for 42% of BYD's net profit that year. In other words, nearly half of the automakers reported earnings did not come from genuine market sales, but relied on financial support from various levels of government. If this fiscal layer is removed, stripping out subsidies, BYD's true operation profit shrinks dramatically.…  

"BYD earns only about 4000 yuan in actual profit per vehicle. A company that claims to control the full EV value chain from batteries and motors to electronic controls and chips reveals strikingly fragile profitability once subsidies are stripped away."

More in the China Observer video.