KATHMANDU: Chinese automaker BYD has scaled back production at several domestic plants as unsold inventory levels continue to rise, despite recent aggressive discounting efforts.
According to Reuters, BYD has canceled night shifts at its plants and deferred plans to install new production lines. At least four of its plants have reduced output by nearly one-third, according to the report.
The decision was reportedly made to cut operational costs and respond to underwhelming sales figures.
In May, BYD slashed prices on 22 of its models, offering discounts of up to $7,400 to clear growing dealership stock. However, it was not of much help, as inventory has continued to pile up. A recent dealer survey showed BYD’s average inventory period was 3.21 months, well above the national average.
Although BYD recorded a new weekly high in registrations in the third week of June, the overall inventory challenge suggests a cautious road ahead as the automaker recalibrates its domestic supply strategy.
While the company posted an 11% year-on-year increase in domestic sales in the first five months of 2025, and exports more than doubled during the same period, production growth flattened in May. Market observers point to a mismatch between the production pace and retail absorption.
Although BYD recorded a new weekly high in registrations in the third week of June, the overall inventory challenge suggests a cautious road ahead as the automaker recalibrates its domestic supply strategy.
BYD has not made an official comment on the production slowdown.
The Chinese company has been expanding its presence in Nepal through its authorized distributor, Cimex Inc. The company currently offers electric models such as the BYD Atto 3, E6, and Dolphin in the Nepali market. BYD has remained the number one Chinese EV brand in Nepal in terms of sales volume since its launch in the domestic market in 2018.
Models like the Sealion 7, Shark 6 Pickup and Seagull are in the pipeline for launch in Nepal.
