0722 GMT - BYD will likely see near-term market volatility given recent industry news around price competition, DBS analysts write in a note. The recent share price volatility would give investors some opportunity to buy on dips, they add. Aligning supply and demand is a decisive move taken by BYD to lower inventory pressure, allowing the market to consume the available inventory, after news about BYD adjusting production to a more realistic level, they say. The auto industry has been facing over-capacity issues in recent years, which has led to severe market competition, they add. BYD's production adjustment is likely to bring utilization rate down to the mid-70% level this year, DBS says. While BYD has suspended plans to venture into Mexico, its long-term overseas strategy remains intact, they say. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

July 07, 2025 03:22 ET (07:22 GMT)

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