BYD Stock Dips In China After Largest Recall Yet Over Battery Risks, Design Flaws

Shares of BYD fell 2.5% in Hong Kong on Friday after China’s market regulator said the automaker will recall more than 115,000 vehicles, its largest recall to date, over design flaws and battery-related safety risks.

The news is likely to weigh on BYD’s U.S.-listed stock, which has already slipped about 0.4% so far this week.

Regulator Flags Safety Issues 

According to the State Administration for Market Regulation, BYD has filed plans to recall 44,535 Tang series vehicles produced between March 2015 and July 2017, citing component design defects that could cause abnormal function, Reuters reported.

The company will also recall 71,248 Yuan Pro electric vehicles manufactured between February 2021 and August 2022, due to manufacturing problems linked to battery installation that could pose safety risks.

In January, BYD recalled about 6,800 Fangchengbao Bao 5 plug-in hybrid SUVs over potential fire hazards. The company also pulled back nearly 97,000 Dolphin and Yuan Plus EVs in September 2024 due to steering control unit issues that raised fire concerns.

Delivery Growth Slows 

The recall follows a weaker sales report earlier this month, when BYD said it delivered 396,270 new energy vehicles in September, down 5.5% from a year earlier.

That total included 393,060 passenger vehicles, 3,210 commercial vehicles, and 71,256 exports. Battery electric models accounted for 205,050 units, while plug-in hybrids contributed 188,010 units.

Across the third quarter, BYD sold over 1.11 million vehicles, with 582,522 battery electric cars among them. The automaker’s September production volume was 405,554 units, down from 441,052 a year earlier.

Global Expansion Plans

Meanwhile, BYD’s expanding overseas push could face new challenges as it manages the large-scale recall at home. 

The company said last month that it expects exports to make up as much as 20% of total sales this year, and it wants to deliver 800,000 to 1 million vehicles overseas in 2025.

BYD is also targeting to double its European showroom count to 2,000 by 2026, and start making cars at its Hungary factory early next year.

How’s Retail Feeling About BYD?

On Stocktwits, retail sentiment for BYD has remained ‘bearish’ over the past week, with ‘normal’ message volume observed on Thursday.

BYD’s U.S.-listed stock has risen 23% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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