📉 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
