After a meteoric rise to become the world’s number one electric vehicle seller, BYD is starting to slow down. The Chinese automaker has recently cut production and postponed expansion plans at several domestic factories, a move analysts see as a clear sign of “inventory pressure” and an oversupplied market.
BYD has halted new hiring and reduced capacity at at least four major plants, according to insiders. Several expansion projects planned for the second half of 2025 are also on hold.
In fact, BYD’s vehicle production has fallen by 3–5% per month in the past two months, and its growth rate has dropped by 29% compared to the fourth quarter of 2024. Many models such as Dolphin, Yuan Plus, and Seal have recorded rapid increases in dealer inventories, while sales have not kept up with production.
The main reason is believed to be fierce competition in China’s domestic EV industry, where major players such as Geely, NIO, Li Auto, and even Xiaomi have continuously launched products at deep discounts. In addition, consumers have also begun to show signs of being more cautious when choosing electric vehicles among hundreds of similar options in terms of price and features.
This “downshift” does not mean a crisis, but it is an important warning after a period of prolonged hot growth for BYD. The company still maintains its target of selling 5.5 million vehicles in 2025, but may have to adjust its growth path towards stability and better risk control.
Observers say BYD is entering a period of “strategic purification” where it no longer competes for output at all costs, but instead focuses on quality, brand, and expanding overseas markets. This also reflects the maturity of China’s electric vehicle industry, from boom to sustainability.
Source: https://khoahocdoisong.vn/byd-giam-san-luong-tai-trung-quoc-vi-ton-kho-tang-cao-post1550436.html
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