BYD Foots the Bill for Two Safety Fixes as Europe Plant Decision Slips to End-2026

BYD absorbs two safety recalls in China and Australia while targeting up to two million overseas shipments in 2026 and weighing a European plant purchase.

BYD is absorbing the cost of two separate safety campaigns on opposite sides of the globe, even as it presses ahead with an overseas expansion that management expects to deliver up to two million shipments abroad next year.

In China, the state market regulator ordered an immediate recall of 183,211 vehicles from the Qin and Tang lines, covering units built between 2014 and 2022. The stopper buffers on the brake pedals of the affected cars can crack or come loose, which risks leaving the brake lights permanently illuminated. Reuters reported that BYD will replace the faulty part free of charge through authorised dealers.

Because the campaign targets older model years, the financial hit is largely confined to service costs in the home market, with no material drag on operating business expected. The recall lands at an awkward moment, however: Chinese authorities launched a one-year safety review of connected and electric vehicles at the end of August, doubling the mandatory minimum test distance from 15,000 to 30,000 kilometres. That tougher regime is ratcheting up scrutiny of domestic manufacturers across the board.

Australian Pickup Owners Called In

BYD's overseas customers are not escaping workshop visits either. In Australia, a safety recall covers all 32,009 examples of the Shark 6 pickup delivered so far. A poorly fitted or worn retaining cable can cause the spare wheel to detach while the vehicle is moving — a defect that applies equally to the Premium, Performance and Dynamic variants. Inspecting and reworking each truck takes roughly 30 minutes, according to the manufacturer.

It is not the company's first such episode Down Under. Back in 2022, BYD had to remedy the Atto 3 over flaws in its child-seat anchorages.

Pricing has meanwhile drawn attention in the same market. BYD recently cut the price of its Atto 1 by almost AUD 7,000 to AUD 19,900. Stephen Collins, the company's Australian chief operating officer, pushed back on talk of a price war, framing the move as part of a time-limited sales campaign. Beijing has warned domestic carmakers against dumping inventory abroad through aggressive discounts.

Europe: Buying Beats Sharing

On the production front, BYD has sharpened its European plans. Alfredo Altavilla, the group's European adviser, said the carmaker now intends to acquire an existing plant outright rather than pursue a shared manufacturing arrangement. Spain and France are seen as the leading candidates, with Italy held in reserve as a fallback. A decision on the site of BYD's second European vehicle factory is due by 31 December 2026.

The search is tied to anticipated EU rules on local value creation. While output ramps up at BYD's first European site in Hungary, management is targeting four manufacturing facilities on the continent over the longer term — three for vehicle assembly plus a dedicated battery plant.

Two Million Overseas, Trucks to Follow

Global volumes are moving in parallel with that build-out. At a meeting reported by Deutsche Bank, management flagged overseas deliveries of as many as two million vehicles for 2026, rising to more than 2.5 million units in 2027. Commercial vehicles form part of the push: at the IAA Transportation show in Hanover, BYD showcased heavy electric trucks including the ETT 44 tractor unit. A European launch for its heavy lorries is slated for 2027, with local production envisaged further out.

The premium Denza brand, meanwhile, unveiled its Z9GT in Thailand on 16 September.

Investors have stayed largely unmoved by the regulatory pressure. BYD shares closed Friday at EUR 9.00, a daily loss of 0.8%, leaving the stock down 16% since the start of the year.