BYD Scales Back as EV Market Heats Up in China
Chinese electric vehicle leader BYD is slowing production and expansion amid rising inventory and a hyper-competitive market. The company has reduced factory shifts and delayed plans for additional production lines, responding to slower sales growth and industry-wide pricing pressures.
Amid a fiercely competitive Chinese electric vehicle market, BYD, the country's EV leader, is curbing its aggressive expansion. Sources reveal that the automaker has scaled back production by cutting shifts and postponing new production lines.
This pullback highlights potential growth challenges for BYD, which surpassed Tesla to become the world's leading EV manufacturer, but now faces swelling inventory and industry-wide price cuts. The company reduced operations in at least four plants, affecting a third of their output capacity.
Striving to meet ambitious sales targets amid a slowing market, BYD's extensive price discounts have not matched expectations, causing dealer inventory to pile up. Meanwhile, regulatory scrutiny is intensifying over cutthroat pricing strategies. As local sales dwindle, BYD ramps up overseas ventures to sustain its pace.
(With inputs from agencies.)
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