Finance

BYD Issues Massive Recall of Nearly 100,000 Electric Vehicles Due to Fire Hazard!

2024-09-29

Introduction

In a significant move, BYD is recalling approximately 96,714 of its Dolphin and Yuan Plus electric vehicles (EVs) in China, effective September 30, 2024, due to potential fire risks linked to a manufacturing defect. This marks one of the few recall actions taken by the leading new energy vehicle (NEV) manufacturer, whose reputation has generally been unblemished in the rapidly-growing EV market.

Recall Details

According to the announcement made by China's State Administration for Market Regulation (SAMR), the recall will be executed by two different BYD subsidiaries. BYD Auto Industry Co Ltd will take back 87,762 Dolphin and Yuan Plus units produced between February 4, 2023, and December 26, 2023. Meanwhile, an additional 8,952 Yuan Plus EVs manufactured between November 2, 2022, and June 19, 2023, will be recalled by BYD Auto Co Ltd.

Fire Hazard Explanation

The potential fire hazard stems from issues identified in the Column-Assist Electric Power Steering (CEPS) controller. Specifically, the circuit board's capacitor may form microcracks during the manufacturing process. As these cracks develop over time, they could lead to short circuits, resulting in overheating that raises the risk of fire.

Remedial Measures

To address this safety concern, BYD plans to retrofit the affected vehicles with insulation gaskets for the controllers, ensuring that all remedial work will be carried out at no cost to the owners.

Market Position and Performance

In spite of this recall, BYD continues to dominate the NEV market in China, having achieved record sales of 373,083 units in August alone, reflecting a remarkable year-on-year increase of 35.97 percent. Overall, from January to August 2024, the company sold 2,328,449 NEVs, recording a 29.92 percent rise compared to the same period last year.

Comparison with Competitors

Unlike global competitor Tesla, which frequently undertakes recalls—including for software-related issues—local Chinese manufacturers typically experience fewer recalls. BYD’s last known recall occurred on April 30, when it called back 16,666 Seagull EVs due to a software glitch affecting the reverse camera mechanism.

Conclusion

As the demand for electric vehicles continues to surge, manufacturers like BYD must navigate the difficult balance between innovation, safety, and customer trust. With this latest recall, consumers will undoubtedly be keeping a closer watch on how the company addresses these challenges moving forward.

Stay Updated

Stay tuned for more updates on this developing story!