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BYD to Issue Software Update for 90K Hybrids to Fix Battery Defect

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Key Takeaways

  • BYD will update 88,981 Qin Plus DM-i hybrids after regulators found battery-pack defects.
  • Manufacturing inconsistencies may cut power output or block full electric-mode use.
  • BYD will monitor vehicles and replace battery packs for free if issues are detected.

BYD Company Limited (BYDDY - Free Report) , a Chinese EV manufacturer, will issue a software update for about 90,000 plug-in hybrid vehicles in China after regulators warned that defects in battery pack production could pose safety risks, per Bloomberg News.

The update covers 88,981 Qin Plus DM-i sedans built between January 2021 and September 2023, per a notice from the State Administration for Market Regulation.

The move follows an official probe into battery-pack flaws, which is significant given the model’s large sales volume and its importance to BYD’s monthly performance. Regulators found inconsistencies in how the battery packs were manufactured, potentially leading to reduced power output or preventing the cars from operating in full electric mode. Since the Qin Plus DM-i made up roughly 20% of BYD’s October sales, the issue is significant as major EV makers battle over reliability.

BYD will deliver the fix via an over-the-air update, monitor vehicles for any irregularities and use dashboard warnings to alert drivers. If a problem is discovered, BYD will replace the battery pack at no cost.

Per Seeking Alpha, in November, BYD delivered 474,921 passenger vehicles, down 5.7% from a year earlier. This included 237,540 battery-electric models, which grew 19.9% year over year, and 237,381 plug-in hybrids, which fell 22.4% from the prior year.

BYD Zacks Rank & Key Picks

BYDDY carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks in the auto space are General Motors Company (GM - Free Report) , OPENLANE, Inc. (KAR - Free Report) and Garrett Motion Inc. (GTX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 21 cents and 38 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 9.4% and 48.2%, respectively. EPS estimates for 2025 and 2026 have improved 9 cents and 11 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 16.7%, respectively. EPS estimates for 2025 and 2026 have improved 13 cents and 27 cents, respectively, in the past 60 days. 

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