BYD Co (HKG:1211, LSE:0HKY, OTCQX:BYDDY), a Chinese electric vehicle maker, has slowed production in recent months by reducing shifts at its factories, according to a Reuters report.
The company has cancelled night shifts and reduced output by at least a third of its capacity at some factories in China, sources told the publication.
Sources also said that BYD has curbed its expansion efforts, delaying plans to add new production lines.
One source told Reuters these measures were aimed at saving costs, while another said they were introduced after sales did not meet targets.
BYD sold 4.27 million vehicles last year, mainly in China, and had targeted a nearly 30% sales increase to 5.5 million units this year. However, recent data shows a marked slowdown in production growth, with output in April and May 2025 about 29% lower than in the last quarter of 2024.
Additionally, this production cutback comes amid rising inventory levels despite significant price reductions BYD implemented to compete in China's competitive automotive market. The price cuts, including lowering the starting price of its most affordable model to around $7,800, have triggered a broader price war among Chinese EV makers.