Chinese EV Manufacturer BYD Faces Largest-Ever Vehicle Recall in History

BYD Company Ltd., the leading electric vehicle manufacturer in China, has announced a significant recall impacting over 115,000 vehicles. This action marks the largest recall in the company’s history and has raised concerns about product quality within the rapidly evolving EV market.

Details of the Recall

The recall plan, reported by China’s State Administration for Market Regulation (SAMR), includes:

• Tang Series SUVs: 44,535 units manufactured from March 2015 to July 2017. Issues identified could lead to abnormal functioning of certain parts.
• Yuan Pro Electric Vehicles: 71,248 units produced between February 2021 and August 2022. These vehicles face battery installation defects that may present fire hazards.

BYD has committed to inspecting and replacing the faulty components at no cost to the owners. The recall will be executed in stages to manage the availability of replacement parts and minimize delays for affected customers.

Growing Quality Concerns

This is not BYD’s first recall. The company has faced several such incidents in recent times:

• In January 2025, 6,843 Fangchengbao Bao 5 plug-in hybrid SUVs were recalled due to fire risks.
• In September 2024, approximately 97,000 Dolphin and Yuan Plus EVs were recalled over steering control flaws that could potentially lead to fires.

These repetitive recalls have ignited questions about BYD’s quality assurance as it scales its production capabilities both domestically and internationally. As competition intensifies from brands like Tesla, Nio, and XPeng, the company’s reputation may be at stake.

Market Response and Stock Analysis

Following the recall announcement, BYD stock saw a nearly 4.5% drop in Hong Kong trading. Analysts from Wall Street are currently holding a Moderate Buy consensus on BYDDF stock, highlighting seven Buy ratings and three Holds released in the last three months. The stock price target averages around $24.90, reflecting a potential upside of 80.83%.

Year-to-date, shares of BYD have recorded a gain of 22.8%, showcasing resilience despite recent challenges.