BYD Company Ltd. (HK:1211) (BYDDF), China’s top electric vehicle (EV) maker, fell nearly 4.5% in Hong Kong trading on Friday after the company announced its largest recall to date, affecting more than 115,000 cars. The recall involves design faults and battery safety risks, according to China’s market regulator.
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The move raises new concerns over product quality at a time when competition in China’s fast-growing EV market is intensifying.
BYD to Recall Over 115,000 Vehicles
The State Administration for Market Regulation (SAMR) said BYD has filed a recall plan for 44,535 Tang series SUVs made between March 2015 and July 2017 due to design issues that could cause certain parts to work abnormally.
The company will also recall 71,248 Yuan Pro electric vehicles built between February 2021 and August 2022 because of battery installation problems that could raise fire risks.
BYD said it will inspect and replace affected parts free of charge. The recall will roll out in stages to ensure enough replacement parts are available and to reduce delays for car owners.
Quality Concerns Grow After Repeated Recalls
This is BYD’s largest recall on record, following several others in the past year. In January 2025, BYD recalled 6,843 Fangchengbao Bao 5 plug-in hybrid SUVs over fire concerns. In September 2024, it also recalled about 97,000 Dolphin and Yuan Plus EVs because of a steering control fault that could also cause fires.
These repeated recalls have raised questions about BYD’s quality control as it expands production at home and abroad. These problems could hurt the company’s image at a time when rivals like Tesla (TSLA), Nio (NIO), and XPeng (XPEV) are gaining ground in both domestic and global EV markets.
Is BYDDF a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BYDDF stock based on seven Buys and three Holds assigned in the past three months. At $24.90, the average BYD Co. stock price target implies an 80.83% upside potential. Year-to-date, shares of the company have gained 22.8%.
