BYD’s Production Capacity Operating Steadily, According to Authorities

A source close to BYD has confirmed that the new energy vehicle giant's production capacity remains stable, despite recent reports suggesting a slowdown.

Speaking to FANS BYD on condition of anonymity, the insider said that BYD has seen steady sales growth in recent months, and that production output has remained consistent throughout this period.

The source also noted that inventory levels at BYD dealerships remain within a reasonable and manageable range.

Reuters reported yesterday, citing two unnamed sources, that BYD has slowed production and expansion efforts in recent months, cutting shifts at some of its factories in China and delaying plans for new production lines.

According to Reuters, average inventory levels at BYD dealerships currently stand at 3.21 months—significantly higher than the industry average of 1.38 months.

In contrast, a source told FANS BYD that BYD’s market share continues to rise, noting that the company’s share in China’s overall auto market—including both electric and gasoline-powered vehicles—has grown from 15% to 17% over the past few months.

Over the last five months, BYD sold 1.76 million vehicles globally, a 39% year-on-year increase. Overseas sales reached 373,000 units, up 112% compared to the same period last year.

According to CnEVPost data, BYD’s monthly overseas sales hit record highs in the first five months of 2025, with year-on-year growth ranging from 83% to 188%.

At the company’s 2024 Annual Shareholders Meeting on June 6, BYD Chairman and President Wang Chuanfu stated that the company delivered around 90,000 vehicles overseas in May, and projected that overseas performance would remain solid throughout the year.

Domestically, several Chinese media outlets have reported that BYD is offering dealers a rebate of approximately $93 per vehicle, a level similar to incentives seen in early 2023.

Additionally, BYD has implemented an inventory cutoff mechanism: when dealer stock exceeds a designated threshold, the company suspends further shipments to those dealers to prevent oversupply.

According to data from the China Passenger Car Association (CPCA), as of the end of May, China’s total passenger car inventory stood at 3.45 million units, down 50,000 from April but up 160,000 compared to May 2024.

The CPCA also reported that inventory levels of Chinese domestic brands remained flat at 1.9 million units compared to April.

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