BYD’s Production Capacity Remains Stable, Sales Growing Steadily
A source close to BYD (HKG: 1211, OTCMKTS: BYDDY) recently revealed that the new energy vehicle (NEV) giant’s production capacity has remained stable, dispelling rumors of production slowdowns. This news comes on the heels of reports suggesting BYD had reduced shifts at some factories and delayed expansion plans.
According to the insider, BYD’s sales have been steadily increasing over the past few months, with production capacity remaining consistent. Dealers’ inventory levels are also reported to be within reasonable ranges, indicating a healthy balance between supply and demand.
Despite reports of production adjustments, BYD’s market share has continued to rise in China’s automotive market. The company’s overall market share, which includes both electric vehicles (EVs) and gasoline-powered vehicles, has increased from 15 percent to 17 percent in recent months.
Global sales figures further underscore BYD’s success, with the company selling 1.76 million vehicles worldwide in the last five months alone. Overseas sales have seen a significant uptick, reaching 373,000 units and boasting a year-on-year growth rate of 112 percent.
In the domestic market, BYD has implemented measures to manage inventory levels effectively. The company has introduced a rebate subsidy scheme for dealers and a meltdown mechanism to prevent inventory overload.
Recent data from the China Passenger Car Association (CPCA) indicated that China’s passenger vehicle inventory stood at 3.45 million units as of May, with domestic brands accounting for 1.9 million units. Despite a slight increase from the previous month, overall inventory levels remain stable.
BYD’s commitment to maintaining a stable production capacity and adapting to market demands has positioned the company for continued success in the rapidly evolving automotive industry. With sales on the rise and a growing market share, BYD is poised to solidify its position as a leading player in the NEV sector.
