BYD May See Short-Term Volatility But Presents Opportunity to Buy on Dips -- Market Talk
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.