BYD Announces New Recall of Nearly 89,000 Plug-In Hybrids Over Battery Safety Risks

The Chinese automaker faces mounting questions over battery issues, quality control, and its rapid expansion into overseas markets.

BYD electric cars wait to be loaded onto a ship for export at a port in Yantai, in Shandong province, China, on April 18, 2024. STR/AFP via Getty Images

Chinese electric-vehicle giant BYD has issued another major recall, its second in just a few weeks, amid growing scrutiny over the safety of its battery systems. The company said on Thursday it would recall 88,981 Qin Plus DM-i plug-in hybrid sedans due to potential battery defects.

China’s State Administration for Market Regulation announced the recall on Friday, saying the affected vehicles may experience limited battery output due to inconsistencies in the manufacturing process of the power-battery pack. In extreme cases, the cars may be unable to operate in pure-electric mode, posing a safety risk.

The recall covers two production batches: 52,890 vehicles manufactured between Sept. 26, 2021, and Sept. 23, 2023, and another 36,091 produced between Jan. 7, 2021, and Sept. 30, 2022.

BYD said it will fix the issue through an over-the-air software update that improves onboard diagnostics. If the system detects abnormal battery behavior, the battery warning light will appear, and the vehicle’s owner will be instructed to visit a BYD service center for a free battery replacement.

Growing List of Recalls

The move adds to what has already been a difficult year for the world’s largest EV maker by sales. BYD has recalled more than 210,000 vehicles so far in 2024, including nearly 7,000 units of a plug-in hybrid off-road SUV.

In mid-October, the automaker informed the State Administration for Market Regulation of its largest-ever recall, more than 115,000 Tang and Yuan Pro models produced from 2015 to 2022, over design flaws and battery-related safety risks.

Earlier in September, BYD recalled almost 97,000 Dolphin and Yuan Plus electric vehicles due to defects in the steering control unit that could pose a fire risk, according to Chinese state media Xinhua.

Financial Pressures Mount

The company’s earnings have weakened alongside the surge in recalls. BYD’s sales in October fell 12 percent from a year earlier, marking a year-over-year monthly decline in 19 months. Its third-quarter profit dropped 33 percent.

The downturn comes as Chinese automakers face growing scrutiny abroad. BYD and other EV exporters have been accused by U.S. and EU regulators of benefiting from state subsidies that allow them to undercut international competitors, sparking investigations into possible dumping and unfair trade practices.

Broader Concerns Over Safety and Labor Practices

At the same time, a rise in safety incidents involving Chinese-made EVs has raised concerns among regulators and consumers. Industry insiders have pointed to corruption within the Chinese communist regime and lax quality control as factors undermining vehicle safety.

BYD has also faced scrutiny in its human rights practices. Last year, Brazilian prosecutors alleged that workers at a BYD facility in Bahia were victims of human trafficking and subjected to slave-like working conditions—allegations the company denied.

The latest recall underscores the challenges facing BYD as it seeks to expand rapidly into global markets while defending its safety record and business practices.