BYD’s Quality Problems Hit International Markets: Report

EVs piling in European warehouses and logistics-related quality issues are new headaches for the world’s largest EV maker. Lining up on docks waiting to be shipped, hundreds of thousands of them.

Mar 12, 2024 

BYD is running into some new obstacles as it expands its footprint in the Chinese and overseas markets. Chinese-made BYD models shipped to Europe, the Middle East, and South Asia are plagued with quality issues, The Wall Street Journal said in its latest report.

The Warren Buffet-backed automaker had a record sales year in 2023, dethroning Tesla as the world’s largest electric vehicle manufacturer. It was also the third largest automaker by market capitalization as of the end of last year, right behind Tesla and Toyota.

The recent report states that export vehicles from China require several fixes and repairs when they arrive at their destination. Vehicles that landed in Japan had scratches, and the ones that arrived in Europe had mold, the report stated.2

While mold can be a common occurrence in cars, especially when they’re stored for a long duration in humid weather, the issue with BYD cars in Europe was that they didn’t receive the proper treatment to have the mold removed.

In Thailand, where Chinese EVs have taken the domestic automotive market by storm, BYD’s quality issues seem to be mounting. Complaints of paint and plastic peeling have become public. Meanwhile, in Israel, BYD EVs are reported to have warped under the weight of roof racks.

These seem like logistics-related issues, rather than manufacturing defects. A BYD executive told WSJ that the issues were equivalent to “going to a decent restaurant but finding that the plate is chipped.” Some 10,000 BYD cars are estimated to be parked in European warehouses, where they have been waiting to be sold since the end of last year.

Maintaining tight quality control across the global shipping route might be a new challenge for BYD. But it’s too early to gauge if these quality problems are false alarms or something BYD needs to take very seriously.

The automaker’s sales slumped in February 2024 due to an industry-wide slowdown. It is also expected to miss its internal target of selling over 400,000 cars in international markets this year.

Chinese EVs have many problems with quality issues such as safety concerns like battery fires and electrical system problems, and user experience issues including interior rattles, excessive noise, and poor-quality cameras and infotainment systems. Reports also show problems with accelerated wear on components like suspensions in certain climates and a continuous report from consumers of lower quality in components.

Safety concerns

• Battery fires: A big problem is for some models to catch fire, often linked to lithium battery malfunctions, particularly during charging. Reports show an increase in EV fires in China, many associated with battery issues.
• Safety system complaints: Some owner complaints involve safety system issues, such as poor-quality reversing cameras and excessive, loud radar alerts. 

Interior and user experience issues

• Noise and refinement: Many models have issues with excessive road noise and interior rattles.
• Infotainment and electronics: Issues have been reported with infotainment systems, including poor Bluetooth connectivity and inaccurate information like incorrect time and directional mapping displays.
• Interior quality: Complaints have been made about a toxic interior smell and the overall quality of materials.
• Design and features: Some users cite strange design choices like images of pandas and cute creatures on walls and other unnecessary features. 

Performance and durability

• Climate-related issues: In colder climates, the battery's run down rapidly, and some components, like suspension, may rust or be more susceptible to damage from cold and road chemicals.
• Component wear: Reports of component failure, such as transfer case issues, have been common, linked to the use of softer steel. 

Brand and market factors.

• Varying quality: Quality can vary significantly between brands and models even when quality is poor, some high-end Chinese EV brands, especially those with strong backing or technology, are struggling in quality and technology, while other lower-cost brands may have even more issues.
• Consumer perception: Despite improvements, consumers, especially outside of China, still have reasons associating Chinese vehicles with the poorest quality, which remains a barrier to market performance.