According to Reuters, BYD (1211. HK), the world’s best-selling electric car company, has cut shifts at two Chinese auto assembly factories.
BYD, which outsells Tesla (TSLA.O) in China, requested certain workers at its Xian facility, its biggest production center, to work only four days a week at a factory running two eight-hour shifts each day, according to three sources and an internal document written earlier this month and obtained by Reuters.
BYD’s best-selling Song and Qin EV cars are made in Xian.
Four sources claimed BYD decreased shifts at its Shenzhen facility, which builds Han sedans, from three to two each day.
BYD declined to comment. The manufacturing timetable is confidential. Thus sources declined to be identified.
Reuters’ planning document did not explain BYD’s reduced shifts. BYD has cut output, however, from the start of the year, due to decreased industry-wide demand in China.
Reporters could not ascertain how long BYD’s shortened shifts would persist or if its other three Chinese assembly factories were affected by production schedule modifications. Production volume impacts from fewer shifts were unclear.
BYD is rapidly expanding in China. It outsold Volkswagens in the country for the first time last month. In addition, BYD outsold Tesla almost five times in the first two months of the year.
Because industry-wide sales slowed and China halted its EV and plug-in electric car subsidy scheme, BYD has likewise slowed production.
As other automakers have followed Tesla into a pricing battle for market share, analysts have credited aggressive reductions for some demand, but industry-wide stockpiles have been growing.
According to Chinese Association of Vehicle Manufacturers statistics, BYD manufactured 5,749 automobiles per day in January and February, 22% less than in October and November.
BYD reported 89% growth in total sales, including exports and dealer sales, in the first two months. In addition, According to insurance registration data, the China Merchants Bank International report revealed 66% retail sales growth.
BYD discounted its best-selling Yuan Plus and Seal EVs in March to boost demand. In addition, the Han sedan and Tang crossover were updated last week.
