A source familiar with BYD’s operations said the Chinese new energy vehicle (NEV) manufacturer has maintained stable production capacity and growing sales, countering recent reports that the automaker had slowed output and delayed expansion efforts.
“BYD’s sales have grown steadily, and production capacity has remained stable,” the person told CnEVPost on Wednesday, requesting anonymity due to the sensitivity of the matter.
The remarks come after a Reuters report, citing two unnamed sources, said BYD had reduced work shifts at some factories in China and delayed plans for new production lines, citing signs of slowing momentum in the domestic market. The report also noted that the company’s average dealer inventory stood at 3.21 months — more than double the industry average of 1.38 months.
In response, the source told CnEVPost that “BYD dealers’ inventory level is also within a reasonable range” and emphasized the company’s growing market share. “BYD’s market share in China’s automotive market has increased from 15 percent to 17 percent in recent months,” the person said.
Between January and May 2024, BYD sold 1.76 million vehicles globally, a 39% increase from the same period last year. Overseas sales more than doubled, reaching 373,000 units — up 112% year-on-year. According to the company, international sales have set records each month so far this year, with growth ranging from 83% to 188%.
Chairman and President Wang Chuanfu expressed optimism during the company’s annual shareholders’ meeting on June 6, noting that overseas sales in May approached 90,000 units and that full-year overseas figures were expected to remain strong.
Domestically, BYD recently resumed dealer subsidies of RMB 666 ($93) per vehicle, echoing a similar initiative early last year. The company has also implemented a “meltdown mechanism” to manage inventory levels — suspending shipments to dealers if their stock exceeds predefined thresholds.
As of end-May, total passenger vehicle inventory in China stood at 3.45 million units, down 50,000 from April but up 160,000 compared to May 2023, according to the China Passenger Car Association (CPCA). Inventory for domestic brands remained flat at 1.9 million units.
