BYD faces heavy inventory pressure and has not achieved sales targets

According to insiders, the direct reasons for BYD's adjustment include inventory pressure and sales targets that fell short of expectations. According to data from the China Automobile Dealers Association in May, BYD dealers' average inventory reached 3.21 months, far higher than the industry average of 1.38 months. In addition, in response to market competition, BYD's recent launch of low-priced models has stimulated some demand, but has also intensified the industry's price war, resulting in pressure on dealers' cash flow.