Chinese Auto Giant BYD Cuts Production
The Chinese company BYD, which grew rapidly in recent years, is now facing a decline in demand. According to sources, the manufacturer has reduced night shifts at several plants and suspended plans for production expansion. One anonymous informant noted:
The decision to cut production is related to sales not meeting the expected level.
In April and May 2025, the growth rate of BYD’s automobile production slowed significantly – to 13% and 0.2% respectively. These are the lowest figures since the beginning of 2024. Furthermore, the company’s dealers in China have a vehicle inventory of 3.2 months, which is more than double the industry average.
Consequences of Rapid Development
Despite financial success – in 2024, BYD’s revenue reached 777 billion yuan ($108.3 billion), surpassing Tesla’s figures – the company is facing problems. Large vehicle inventories at dealers have led to the closure of some retail outlets. The China Automobile Dealers Association is urging manufacturers to align production volumes with real demand.
Although BYD remains the leader in the hybrid vehicle segment, current trends indicate that the market needs time to absorb their mass production. This could affect the company’s plans to sell 5.5 million vehicles in 2025. International expansion may also slow down due to internal challenges.