Chinese electric vehicle maker BYD has quietly dialled back its rapid expansion, cutting shifts at several Chinese plants and postponing new assembly lines, according to insiders. These changes hint that BYD’s blistering growth, which propelled it past Tesla to become the top EV maker, may be running into headwinds as inventory mounts, even after hefty price reductions in China’s fiercely competitive market. BYD cancels all night shifts as production falls Sources familiar with the matter, speaking on condition of anonymity, say BYD has scrapped all night shifts at no fewer than four factories. Production in some plants has plunged by as much as one-third of their maximum capacity. It appears the move was partly to curb costs and partly a reaction to sales figures falling short of lofty targets. Data from the China Association of Automobile Manufacturers shows BYD’s year-on-year output growth slowed to just 13% in April and virtually zero in May, the weakest pace since the Lunar New Year holiday slump in February 2024. What is more, average monthly production in April and May this year was nearly 30% below the final quarter of 2024, marking a clear reversal of the ramp-up seen in 2023 and early 2024. In addition to trimming shifts, BYD has paused plans to add fresh production lines, one insider added. This has reportedly reduced the output capacity of at least four of the company’s factories by a third. According to CarNewsChina, the reasons behind this action were cost savings and failing to meet targets. The company, which sold 4.27 million vehicles last year, predominantly in China, had aimed for about 5.5 million sales in 2025 , roughly a 30% increase. But with dealers now sitting on nearly 3.2 months of stock, double the industry average, BYD is reassessing its build-out timetable. BYD’s pricing strategy caused massive sell-offs BYD’s aggressive pricing strategy, which cut the entry-level model to just 55,800 yuan (around $7,800), sparked a broader sell-off among Chinese auto stocks and forced rivals to follow suit. Yet dealers warn that steep discounts have eaten into margins and strained cash flow. A major dealership chain in Shandong province even shut down 20 outlets under pressure from swelling unsold inventories. Industry groups have stepped in, too. In early June, the China Auto Dealers Chamber of Commerce urged manufacturers to set “reasonable” production plans that reflect actual retail demand, rather than flooding showrooms with excess cars. Soon after, the China Automotive Dealer Association surveyed its members and found BYD’s average inventory was the highest among all brands. Amid these challenges, Chinese regulators have begun scrutinising the sector more closely, concerned that an unbridled price war could destabilise suppliers and dealers. Many automakers are now looking overseas to offset sluggish domestic demand: BYD exported roughly 350,000 of its 1.76 million vehicles sold in the first five months of 2025, tapping markets in Southeast Asia, Europe, and Latin America. Despite the slowdown, BYD remains bullish on its long-term outlook. It continues to roll out new, budget-friendly models and invest in battery technology, hoping to maintain its lead in the electric revolution. But for now, the company is choosing to cool its frenetic expansion, aiming for smarter growth rather than simply more volume. But earlier this month, BYD launched its new Dolphin Surf model in Rome, with the aim of reaching millions as it consolidates its market share in Europe and continues to surpass rival Tesla. In the UK, where the Dolphin Surf costs £18,650 in its base trim, BYD jumped from 1,611 cars sold through April to almost 12,000 sold during the same period this year. KEY Difference Wire : the secret tool crypto projects use to get guaranteed media coverage
