SHARES in Shenzhen-listed electric-car maker BYD Co. fell more than 3 percent Thursday, weighed down by concerns over government cuts to subsidies on new energy vehicles and the firm’s first-quarter sales, analysts said.

The Warren Buffett-backed car company, which is German automaker Daimler AG’s partner in China, said Wednesday its electric car models were selling well and predicted a sharp first-quarter net profit jump.

But the comparison seemed skewed, as BYD’s first-quarter profit in 2018 fell sharply on cuts to subsidies for electric vehicles, prompting some analysts to say the forecast profit was below expectations.

The automaker’s current quarter sales was also a concern. According to BYD data, it sold around 70,000 vehicles in the first two months of this quarter compared with about 170,000 in the fourth quarter of last year. BYD has not released March sales numbers so far.

“BYD’s new energy vehicle sales in the first quarter is lower than the fourth quarter last year,” said Patrick Yuan, Hong Kong-based analyst at Jefferies.

BYD sold 520,000 vehicles last year, up 27 percent from a year earlier. BYD, whose popular models include its Tang-series electric cars, has said it aims to sell 650,000 vehicles this year.

China’s market for electric cars is booming. Overall electric car sales jumped 61.7 percent in 2018 to 1.3 million vehicles, according to China’s Association of Automobile Manufacturers. (SD-Agencies)