BYD Company's stock (01211.HK) plummeted 5% in Friday's trading session, following news of the company's first quarterly sales decline in over five years. The Chinese electric vehicle giant reported a 2.1% year-over-year decrease in third-quarter sales, marking a significant turning point for the company that has been at the forefront of China's EV revolution.

The sales slump comes amid an intensifying price war in the Chinese automotive market, which is putting pressure on profit margins across the industry. BYD has responded to these challenging market conditions by reducing its production. In September alone, the company cut its output by 8.47%, continuing a trend of scaled-back manufacturing at its factories.

This downturn in BYD's performance is particularly noteworthy as it occurs against the backdrop of a broader slowdown in China's automotive sector. The decline in automobile sales and production not only affects BYD directly but also has potential ripple effects on related industries, such as the rubber market, where reduced demand for tires could further impact prices and production.