BYD Scales Back EV Production Amid Market Headwinds

Chinese electric vehicle giant BYD has quietly rolled back its aggressive expansion strategy, signaling potential turbulence ahead. The automaker, which overtook Tesla in global EV sales last year, is now canceling night shifts at multiple factories and shelving plans for new production lines.

Factory output at some facilities has dropped by as much as 33% from peak capacity. April's year-on-year production growth slowed to a meager 13%, with May showing virtually no increase—the weakest performance since February's Lunar New Year slowdown. This marks a stark contrast to the breakneck expansion that characterized 2023 and early 2024.

The pullback comes as BYD grapples with mounting inventory in China's cutthroat EV market, despite implementing significant price cuts. Industry observers note the company's monthly production average for April-May 2024 sits nearly 30% below Q4 2023 levels, suggesting a deliberate contraction after years of relentless growth.