One of the major dealers of Chinese EV giant BYD Co. Ltd. (OTC:BYDDY) has reportedly shut down its operations across multiple cities in China as the company expands into the European market.
What Happened: Over 20 stores of Tesla Inc. (NASDAQ:TSLA) rival in China's eastern Shandong province, owned by a company called Qiancheng Holdings, were shut, according to a Reuters report citing Chinese state-owned media on Thursday.
The company shutting down the stores in over 4 major cities has affected over 1,000 customers with warranty and after-sales service-related woes, the report suggests.
Qiancheng cited changes to BYD's dealer policies, which increased the pressure on the company's cash flow. However, a representative from BYD cited in the Reuters report suggests that Qiancheng's rapid expansion led to the crisis instead.
BYD did not immediately respond to Benzinga’s request for comment.
Why It Matters: BYD has been steadily expanding its footprint on the global front, with the automaker setting up a manufacturing facility in Hungary, which can annually produce over 200,000 EVs.
BYD also overtook Tesla for the first time in sales in the European market, registering marginally better sales in April 2025 than Elon Musk's company.
However, the Chinese automaker has recently landed in legal trouble as BYD faces a $45 million lawsuit in Brazil for alleged "human-trafficking" and "slave-like" conditions at the construction site in Brazil's Bahia state.
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