BYD Taps Brakes on Production Amid Inventory Surge and Price Wars

BYD, China's foremost electric vehicle giant, has scaled back production as the company navigates mounting inventory and fierce rivalry, insiders reveal. This strategic slowdown involves ceasing night shifts and stalling planned expansions, signaling potential challenges ahead as BYD grapples with unmet sales targets.

The automaker aimed for a near-30% sales spike this year, with 5.5 million vehicles envisioned. However, BYD's once-accelerated production, which propelled it past Tesla as the global EV leader, is now decelerating. Measures taken include significant capacity cuts at factories and halted new line setups, driven by cost-saving needs and below-par market performance.

As price competition intensifies, BYD's price reductions led to wider Chinese auto stock sell-offs. Pressure mounts on dealers burdened by inventory surpluses, pushing them to demand quicker cashback incentives. While regulators amplify scrutiny on the pressured auto industry, BYD and peers are eyeing overseas markets to reclaim sales momentum.

(With inputs from agencies.)