Warren Buffett Backed EV Maker BYD Reduces Shifts At Two China EV Plants

  • BYD Co, Ltd BYDDF BYDDY has reduced shifts at two auto assembly plants in China, signifying weaker demand in the largest auto market.
  • The Warren Buffett-backed company asked some workers at its Xian plant, its biggest manufacturing hub, to work only four days a week in a factory running two eight-hour shifts per day, Reuters reports citing familiar sources and an internal memo.
  • The Xian plant produces BYD's top-selling Song and Qin EV sedans.
  • Also Read: Warren Buffett Backed BYD Showcases Premium Electric Car Brand
  • BYD also reduced shifts at its Shenzhen plant, which makes its Han sedans, from three shifts per day to two per day.
  • Reportedly, BYD has been cutting back on production in the face of weaker industry-wide demand in China since the start of the year.
  • BYD has also been slowing output since the start of the year when industry-wide sales began to stall, and China terminated a national subsidy program for EVs.
  • Analysts have credited aggressive discounts for creating some demand as other automakers borrowed a leaf out of Tesla Inc TSLA into a price war over market share, but industry-wide inventories have been rising.
  • Local Chinese authorities doled out buyer subsidies to drive demand, and some of these programs have started to extend to automakers to encourage manufacturing.
  • BYD began offering discounts for its best-selling Yuan Plus and Seal EVs in March and launched refreshed versions of its Han sedan and Tang crossover last week.

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