BYD pumps the brakes in China
But goes full throttle in Australia with a raft of new models on the wayEV giant BYD has quietly hit the production brakes back home, cancelling night shifts and cutting output by at least a third at some factories.
According to sources with knowledge of the changes, the world’s biggest electric vehicle maker is dialling back new vehicle production, with Reuters reporting that at least four BYD factories have been affected by the production cuts.
BYD manufactured 4.27 million cars in 2024 and had forecast around 5.5 million cars this year, but with rising inventory levels, the EV giant is now facing a reality check on its breakneck expansion plans.
The world’s largest EV maker – yes, it overtook Tesla – is dealing with a classic case of “eyes bigger than stomach” syndrome.
Despite slashing prices globally, BYD dealers in China are sitting on over three months of unsold inventory, based on a Chinese dealer survey conducted in May 2025.
The industry average is barely over one month – so that’s not just excess stock for BYD, it’s a traffic jam of cars with nowhere to go.
Sources who spoke to Reuters allege BYD is also shelving plans for new production lines.
But while BYD is pumping the brakes in China, it’s going flat-out in Australia and other export markets.
The Shark 6 ute has been a sales phenomenon here, proving Aussies are ready for electric pick-up trucks.
The Atto 2 is heading our way to join the already-popular Sealion 6 and Sealion 7 SUVs in what’s becoming a proper Chinese conquest of Australian driveways.
Even more interesting is BYD’s premium brand Denza making its Australian debut, with the B5 and B8 models expected soon.
While the parent company is managing inventory nightmares and even dealer closures in China, it’s betting big that Australian buyers will embrace its upmarket offerings.
This production slowdown isn’t just about BYD. It’s symptomatic of China’s brutal EV price war that’s squeezing everyone from suppliers to dealers.
The Chinese auto dealers’ association is basically begging manufacturers to stop flooding them with cars they can’t sell, which tells you everything about how intense the competition has become.
For Australian buyers, this could actually be good news.
A company with excess production capacity and ambitious export targets (BYD exported 20 per cent of its cars in the first five months of 2025) might mean better deals, faster delivery, and more aggressive market positioning in Europe, Asia and Oceania.
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