Chinese electric vehicle giant BYD (HK:1211) (BYDDF) faces a surge in consumer complaints after introducing free smart driving features across most of its vehicle lineup on February 10. Between February 11-17, over 4,700 complaints were filed against BYD cars on a Chinese auto consumer complaints platform. This reflects a major increase from about 150 complaints the week before and roughly 500 for January.
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Many of these complaints come from customers who feel they overpaid for their vehicles since the new free features were not available at the time of their purchase. The models most affected include those from BYD’s Ocean and Dynasty series.
One notable complaint was from an owner of a Seal 06 DM-i plug-in hybrid sedan, who expressed frustration upon discovering that a newer model with upgrades was launched just two weeks after purchasing his car. The customer sought free upgrades and other compensation from BYD.
BYD Navigates Intense Competition in China
This rise in complaints reflects the challenges faced by automakers in navigating a highly competitive Chinese EV market. These complaints are a result of the extended price war and intense competition, as automakers continue to cut prices, offer free features or incentives, and launch new models rapidly.
Despite these challenges, BYD holds a dominant share of the Chinese EV market. The company’s strategic decision to introduce its autonomous driving system in at least 21 of its EV models at no additional cost is expected to drive sales growth. Further, BYD remains well poised to benefit from its efforts to expand its presence in international markets.
Is BYDDF a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BYDDF stock based on five Buys and one Hold assigned in the past three months. At $45.64, the average BYD Co. stock price target implies a 2.21% downside potential. Year-to-date, shares of the company have gained 37.26%.
