4D·

📰 BYD under pressure: from world leader to crisis? 🚗💥

📉 Production on the back burner

$1211 (-0,57%) BYD has significantly reduced production according to a Reuters report
Night shifts canceled in at least four plants
Production reduced by around 1/3
Plant expansions & new lines stopped for the time being
Reasons:
❗ Missed sales targets
💰 Cost savings

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📊 Growth targets at risk

2024: 4.27 million vehicles sold
2025 target: 5.5 million vehicles
Reality according to CAAM data:
April: +13% production
May: only +0.2% (lowest level since Feb. 2024)
⬇️ Average production in April & May: -29% compared to Q4 2024

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💸 Price war escalates

BYD cuts prices to up to USD 7,800
Consequence: Margins crumble, dealers at the limit
Inventory at BYD: 3.21 months
➤ Highest value of all brands
⬅️ Industry average: 1.38 months
Dealer in Shandong closes over 20 stores
Dealer association warns of market saturation

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🌍 Export as a lifeline?

2025 to date: 1.76 million sales, of which ~20% exports
Export offensive to compensate for domestic weakness
Questionable whether this will be enough

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📦 Conclusion for investors

Short term: 🚨 Problems with sales & margins
Long-term: ⚙️ Economies of scale & strong supply chain as a plus
Recommendation of many analysts: Investors stay on board

Source:

https://www.deraktionaer.de/artikel/aktien/byd-produktion-massiv-gedrosselt-20382226.html

www.deraktionaer.deBYD: Produktion massiv gedrosselt

14 Comentários

Null@Frei

BYD lives only from subsidies

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GreenWash@GreenWash

@Frei and is kept small due to tariffs, otherwise they would have been better represented on the market long ago.

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Null@Frei

@GreenWash Nein

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GreenWash@GreenWash

@Frei Our energy and labor costs are too high and battery technology with the cooperation with CATL is far superior to our cars. We also subsidize our manufacturers, e.g. with the Future Fund for the Automotive Industry.

China subsidizes BYD more directly, while we give subsidies through short-time work allowances, tax exemptions, etc.
Of course, BYD could not function as it does now without the subsidies. But we (the Western countries) are now trying to keep them down by slapping punitive tariffs on the cars so that our cars are not so much more expensive in comparison.

Sometimes it seems to me that we only want the free market if it helps our industry.
If someone else suddenly makes a deal better, it's immediately the bad guys.

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Staatsmann@Staatsmann

@GreenWash In addition, the German car industry has been openly and covertly subsidized for decades.
But in such a way that hardly anyone is interested because we are the "car country Germany".

Now the Chinese are following suit so quickly.

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GreenWash@GreenWash

@Staatsmann Yep, I'm right there with you.

Even the best gearbox and the best engines won't do us any good if we rest on our laurels and think we're the best... The world keeps turning without us. 😅

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CRB_Consulting@CRB_Consulting

@GreenWash just because they use slave labor doesn't mean they can now sell cheap cars to us

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GreenWash@GreenWash

@CRB_Consulting BYD wants to produce cars in Hungary and possibly also in Germany.
Do you think the employees of VW, BMW and Mercedes are better paid in the Chinese plants? Or are we talking about the accusations against BMW in Morocco or something similar? As if we were the saints here.
https://www.tagesschau.de/investigativ/ndr-wdr/umweltstandards-bmw-zulieferer-kobalt-marokko-100.html

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Der Spekulant@Derspekulant1

@GreenWash what they probably all produced during the Second World War ... a very dark chapter that no German company likes to talk about 😅

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CRB_Consulting@CRB_Consulting

@GreenWash vw etc who build in china don't sell them in europe do they? I was referring to the need for customs duties

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SP@spellwan

@Derspekulant1 right Varta, BMW, Braun etc.

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Der Spekulant@Derspekulant1

So far you haven't seen anything in the figures, let's see what the margin looks like in the next figures. I would say that since they have already triggered a price war in China and deliberately sacrificed margin, there is a strategy behind it. On the one hand, of course, to empty stocks and on the other hand to put pressure on competitors who have smaller margins. In the long term, the European market with the planned plant in Hungary will be more interesting.

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Lanre@Lanre

Should we buy more now looking for the long term?

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