BYD Fakes Sales!! Another Evergrande disaster coming!!

[Eisenhut]

 

[Eisenhut]

 

[Eisenhut]

All latest news BYD dealer abandon position

New cars sold internally for statistics and put to 2nd hand market. To get subsidies!!!

 

[congo9]

I wonder how and who is the distributor for BYD car distributor in Singapore

 

[Eisenhut]

Finito de la musika

 

[Leongsam]

So they didn't sell more EVs compared to Tesla after all?

 

[ChopSengHuat]

Up

 

[laksaboy]

So they didn't sell more EVs compared to Tesla after all?

That will be quite problematic as:

1) Tariffs targetting Tiong EVs are in many countries.
2) Tiongs in Tiongland are skint now.
3) CCP regime lying about real population number, there are far fewer Tiongs now than pre-Covid. At least 300mil Tiongs have 'evaporated'.

 

[Hightech88]

All is caused by ranjiao CCP subsidy policies.

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Understanding the Allegations of Faked Car Sales by BYD​

Recent posts on X and web sources indicate that BYD, a major Chinese EV manufacturer, has been accused of inflating its car sales figures through questionable practices. Specifically:

• Zero-Mileage Used Car Scam: Reports suggest BYD has been selling new cars as “zero-mileage used” vehicles to artificially boost sales numbers. This involves registering new vehicles as sold, then immediately listing them as used with significant discounts to clear inventory, a practice criticized by China’s industry ministry.
• Fields of Unsold Cars: Earlier claims, dating back to 2023, allege that BYD and other Chinese manufacturers like Neta left hundreds of thousands of EVs to rot in fields, counting them as sales to claim government subsidies despite not delivering them to actual customers.
• Dealer Practices: A large BYD dealer in Shandong, Qiancheng Holdings, reportedly collapsed in 2025, leaving over 1,000 customers without warranty or after-sales support. The dealer blamed BYD’s policy adjustments for cash flow issues, but BYD countered that the dealer’s rapid expansion was the cause, hinting at aggressive sales tactics possibly encouraged by BYD to inflate numbers.

These allegations suggest BYD may have manipulated sales data to appear more successful, potentially to secure financial benefits or maintain market dominance.

Why Would BYD Fake Their Car Sales?​

BYD’s motivations for allegedly faking sales can be broken down into financial, competitive, and strategic incentives:

Financial Incentives​

• Government Subsidies: China has heavily subsidized its EV industry since 2009, with programs offering billions of yuan to manufacturers like BYD. A 2016 scandal reported by ChinaFile revealed accusations that BYD fraudulently registered 600 electric buses in Nanjing to claim subsidies, a claim supported by a dealer’s suicide note alleging BYD obtained 32.4 million yuan in subsidies through his dealerships, keeping a portion as a sales bonus. More recently, posts on X claim BYD sold cars to related parties to secure these subsidies, suggesting a pattern of exploiting government support.
• Profit Margins: BYD’s aggressive price cuts—e.g., slashing the Seagull’s price to under $8,000—reflect a price war in China’s EV market. With a 70.7% debt-to-asset ratio and low margins on cheap cars, inflating sales figures could help BYD secure more subsidies to offset losses, as noted in web sources discussing the company’s financial pressures.

Competitive Pressure

• Market Share and Perception: BYD overtook Tesla as the world’s top EV seller in late 2023, a milestone heavily publicized globally. Inflating sales figures could maintain this narrative, attracting investors like Warren Buffett (who once held a 10% stake) and boosting stock prices, which are critical for a company with high debt levels. However, a $19 billion stock rout in 2022 after Buffett trimmed his stake shows the volatility tied to such perceptions.
• Dealer Network Strain: The collapse of Qiancheng Holdings highlights how BYD’s push for sales volume may pressure dealers to adopt shady practices, like pre-registering cars, to meet targets and maintain their relationship with BYD.

Strategic Goals​

• Global Expansion: BYD is expanding globally, with factories in Brazil, Hungary, Thailand, and Mexico. Inflated sales figures could strengthen its position as a market leader, making it more appealing to international markets and partners, despite concerns about overcapacity in China.
• CCP Alignment: As part of China’s “Made in China 2025” plan, BYD is positioned as a national champion in the EV sector. Demonstrating success through high sales numbers aligns with the CCP’s goal of dominating the global EV market, even if it involves questionable practices.

Is This Related to CCP Policies?

The CCP’s policies have significantly shaped the EV industry in China, and BYD’s actions cannot be fully separated from this influence. Let’s break this down:

Direct CCP Support​

• Subsidies and Incentives: The CCP has provided substantial financial support to BYD, with a German study estimating at least $3.7 billion in direct subsidies. Shenzhen, BYD’s hometown, mandated that its 21,000 taxis switch to EVs, all supplied by BYD, with subsidies totaling $510 million to make them price-competitive. This direct favoritism creates an environment where inflating sales to maximize subsidies is tempting.
• Policy-Driven Growth: The CCP’s “Made in China 2025” and “China Standards 2035” plans aim to make China the global leader in EVs. BYD, as a key player, benefits from state-backed initiatives, including tax breaks and purchase premiums, which are higher for BYD than for competitors like Tesla or VW in China. This support may incentivize BYD to manipulate sales to meet government expectations and secure further benefits.

Ties to the CCP​

• Leadership Connections: BYD’s founder, Wang Chuanfu, has held official CCP posts, including as a delegate of Shenzhen’s People’s Congress from 2000 to 2010. Other executives, like Zou Fei, are linked to the CCP’s “Thousand Talents Program,” and Wang Zi-dong has ties to Norinco Group, a state-owned defense conglomerate. These connections suggest BYD operates with significant state influence.
• Strategic Alignment: BYD’s R&D centers are incubated in military-affiliated zones, and the company has a partnership with Huawei, a firm banned in the U.S. for security concerns. This aligns with the CCP’s strategy of blurring public and private sectors to serve national goals, as noted in reports on China’s EV industry.

CCP’s Role in Sales Practices​

• Pressure to Perform: The CCP’s focus on EV dominance may indirectly pressure companies like BYD to inflate sales to meet targets, especially since subsidies are often tied to production and sales volumes. The 2016 Nanjing scandal and recent “zero-mileage used” allegations suggest BYD has exploited these policies, possibly with the tacit approval of local governments, as seen in Nanjing’s collaboration with BYD.
• Regulatory Oversight: While China’s industry ministry has questioned BYD’s practices in 2025, the CCP’s broader support for BYD—evidenced by the Economic Daily defending BYD after Buffett’s stock sale—indicates a complex relationship. The CCP may turn a blind eye to such practices if they serve national interests, though public scrutiny forces occasional crackdowns.

Critical Perspective

The narrative that BYD’s actions are solely driven by CCP policies oversimplifies the issue. BYD’s vertical integration, cost-cutting innovations (e.g., owning lithium mines), and technological advancements have made it a global leader, as noted in sources like The New York Times. While CCP subsidies and policies create an environment ripe for manipulation, BYD’s aggressive business tactics—price wars, rapid expansion, and dealer pressure—also reflect corporate greed and market dynamics. The CCP’s influence is undeniable, but BYD’s leadership, with its pugnacious approach to competition, likely plays a significant role in these decisions.

Step 4: Counterarguments and Limitations​

• Lack of Conclusive Evidence: While allegations of faked sales are widespread, there’s no definitive proof tying BYD’s actions directly to CCP directives. The 2016 scandal and recent investigations suggest misconduct, but BYD denies wrongdoing, claiming compliance with laws.
• Industry-Wide Practices: The “zero-mileage used” scam isn’t unique to BYD; other manufacturers like Dongfeng are also under scrutiny, indicating a broader industry issue rather than a BYD-specific conspiracy driven by the CCP.
• Global Context: Western companies have faced similar accusations of sales manipulation (e.g., Volkswagen’s Dieselgate). BYD’s actions may reflect global competitive pressures rather than just CCP influence.

Conclusion

BYD allegedly faked car sales to secure government subsidies, maintain market share, and project success amid a fierce price war and global expansion efforts. Practices like selling new cars as “zero-mileage used” and leaving unsold vehicles in fields to claim subsidies suggest a focus on financial gain and competitive positioning. This is related to CCP policies, as the party’s $3.7 billion in subsidies, favoritism (e.g., Shenzhen taxi mandates), and strategic goals like “Made in China 2025” create incentives for such behavior. BYD’s deep ties to the CCP, including leadership connections and military affiliations, further align its actions with state interests. However, BYD’s corporate strategies—aggressive pricing and expansion—also drive these practices, suggesting a mix of state influence and business ambition rather than solely CCP orchestration. The allegations remain under investigation, and the full extent of CCP involvement is unclear.
------------------- Source: Grok AI

 

[laksaboy]

All is caused by ranjiao CCP subsidy policies.

It's still a communist regime and a centrally planned economy, what you see today is a result of swindling its way into the WTO and stealing tech from the west.

 

[Eisenhut]

So they didn't sell more EVs compared to Tesla after all?

The news refer to BYD sold more than Tesla in Europe, not China. So Europe has no such fake sales issues.

 

[nycheong]

The news refer to BYD sold more than Tesla in Europe, not China. So Europe has no such fake sales issues.

The news is about the dealers over gearing financial issue and not BYD itself

 

[syed putra]

So they didn't sell more EVs compared to Tesla after all?

Tesla probably doubling down due to subsidies. Didn't know CCP subsidise EV. I thought it was revoked.

 

[laksaboy]

If you want to know what kind of basket case country China is becoming...

Jissbon is a China company selling condoms. It is now selling sex toys, a.k.a 'intimate wellness devices'.

https://jissbon.com

Check the archived snapshot of the official webpage in 2024:

https://web.archive.org/web/20240305030555/https://jissbon.com/