BYD Denies Production Cutbacks Amid EV Price War, Says Output Remains Stable: Report

BYD Co. Ltd. BYDDY BYDDF has said that the Chinese EV giant's production has remained stable, despite earlier reports that it had scaled back on manufacturing activities amid China's fierce EV price war.

What Happened: Sources close to the company have reiterated that the production levels on the factory lines remain stable, CnEVPost reported on Thursday.

Earlier, reports in the media suggested that the company had scaled back on production by reducing shifts at Chinese factories and delaying adding new production lines.

Inventory levels at various BYD dealers also remain stable and the company's market share in the Chinese auto market continues to rise, the report suggested, citing the earlier source.

Why It Matters: The report comes in as BYD recently overtook Tesla Inc. TSLA in global EV sales, according to data released by the International Council on Clean Transportation (ICCT).

BYD has also set its eyes on Europe as the brand has released its Dolphin Surf EV in the region for $26,000. The Dolphin Surf is the Euro-spec version of its best-selling Seagull EV in China.

However, back in China, authorities have raised concerns about the aggressive pricing strategies adopted by brands in a bid to boost sales. Despite this, BYD released its Seal 06 EV in China for $15,000, almost half the price of a Tesla Model 3.

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