BYD has scaled back production and delayed expansion at some of its factories in China, Reuters reported on Wednesday, citing two people familiar with the matter.
The company has canceled night shifts and cut output by at least a third at certain facilities, the report said.
In late May, BYD began offering steep discounts — ranging from 10% to 30% — across its Dynasty and Ocean lineups.
The incentives apply primarily to models priced under 150,000 yuan ($20,900), though some higher-priced ones were also included.
BYD-branded vehicles recorded 83,400 insurance registrations in the week of June 16–22, up 18.6% from 70,300 units in the previous week.
The report says the Shenzhen-headquartered company “grapples with rising inventory even after offering deep price cuts in China’s cutthroat auto market.”
Separately, BYD announced on Saturday it is adding two more car carrier vessels to its fleet, bringing the total to six, as it continues to expand overseas logistics capabilities.
The automaker is also finalizing construction of its new plant in Brazil, which is expected to produce 150,000 vehicles annually.
BYD delivered 382,476 vehicles globally in May, a 14% increase from a year earlier. Overseas deliveries reached 89,047 units, marking a new monthly record for the sixth straight time.
As of the end of May, BYD had sold 1.76 million vehicles in 2025 — or 32% of its full-year target of 5.5 million units, which includes 800,000 exports.
