BYD Production Decreases by 2,000 Cars Per Day Due to Covid-Related Staffing Issues

BYD Co., a Chinese carmaker, is the latest large-scale manufacturer to be hit by the nation’s wave of Covid infections. A top executive said production is being curtailed to the tune of at least 2,000 cars a day.

"We've had a bunch of our workers infected with Covid over the last few days, which has severely impacted our production," BYD Executive Vice President Lian Yu-bo said at the APEC SME Business Forum 2022 in Shenzhen on Thursday. "We're now producing 2,000 to 3,000 fewer cars each day."

Lian also said in his remarks that around 20% to 30% of BYD's workers were unable to work and are quarantining at home. His remarks were recorded and then distributed online.

The automaker, which is China’s largest manufacturer of electric vehicles, had an original target for 2022 of 1.9 million pure electric and hybrid cars. However, due to as many as 30,000 fewer cars being made this month, the company will now only reach around 1.88 million.

When asked about the video, representatives for BYD said they were not immediately able to comment on Lian's remarks.

As China's Covid Zero controls come to an abrupt end, infections are soaring, causing a slump in travel and economic activity. New analysis shows that the nation is likely experiencing 1 million infections and 5,000 virus deaths every day, making it the biggest outbreak the world has ever seen.

The large number of people who are now sick has severely limited manufacturers’ ability to produce goods. factories are taking extreme measures to keep machines running, including locking in workers and hoarding medicine.

Some employers are splitting shifts, requesting that Covid-infected staff work on alternate days, while others are asking employees to work longer hours. Still others are asking people to come in even if they’re sick or to come back after a few days of rest.

BYD's reduced output for December implies that the carmaker is on track to sell about 250,000 vehicles for the month. This is based on production figures for the year up to November, which show 1.63 million new-energy vehicles made.

BYD has so far avoided the worst of the Covid disruptions. While smaller rivals like Nio Inc. and Xpeng Inc. have suffered, and even Tesla Inc. has grappled with component shortages and Shanghai's extended lockdown, BYD has continued to expand output, with monthly sales hitting new records.

Shares in BYD fell 3.8% in Hong Kong on Friday, extending its losses for the year to around 27%. The stock has come under pressure as Berkshire Hathaway Inc. trims its stake.