BYD issues its largest recall to date
What's the story
BYD, the world's largest electric vehicle (EV) maker, is recalling more than 115,000 cars in China. The move comes over technical defects in both hybrid and pure-electric models. The two separate recalls were announced by China's State Administration for Market Regulation after investigations into the company's vehicle components. This is BYD's largest recall to date and comes amid a slump in domestic sales.
Recall specifics
Breakdown of the recalls
The first recall affects some 44,000 units of the older Tang hybrid series, manufactured between March 2015 and July 2017. A defective drive motor controller could lead to overheating of the circuit board and even total power failure in extreme cases. The second and larger recall concerns around 70,000 Yuan Pro electric crossovers made from February 2021 to August 2022. These cars have a battery waterproofing issue that could affect power output.
Remedial action
BYD to seal battery housings to fix issues
BYD plans to address the battery waterproofing issue by applying sealant to the battery housing. The recalls come at a crucial time for Shenzhen-based BYD, which is aggressively expanding into international markets while facing fierce price competition at home. Analysts warn that pressure to cut costs in China's intensifying EV price war may be leading to quality control lapses, prompting government scrutiny.
Safety concerns
Potential safety concerns for EVs
While vehicle recalls are not uncommon, these specific defects involve critical components such as drive systems and batteries. This could raise consumer concerns about EV safety. Regulators are currently working on stricter safety rules, including requirements for door handle mechanisms, after fatal incidents linked to hidden designs popularized by Tesla.
Market performance
Sales decline and market challenges
The recall news comes after a slump in BYD's domestic sales. In September, the automaker witnessed its first monthly sales decline in 18 months and lost its position as China's top-selling brand. Amid tough market conditions, BYD has lowered its 2025 sales target from 5.5 million units to 4.6 million.