BYD Faces Challenges: Insurance Brokerage Closure, Dealership Crisis, and New Car Insurance Scams Uncovered

Summary of Recent News

1. BYD Cancels 50 Million Insurance Brokerage Company
   Recently, BYD Insurance Brokerage Co., Ltd. applied for deregistration. Established in March 2022 with a registered capital of 50 million yuan, it failed to obtain insurance business qualifications after three years of approval. Previously, BYD had acquired Yi’an Property & Casualty Insurance, renaming it Shenzhen BYD Property Insurance, but its operations were limited to eight provinces and cities. Analysts suggest that BYD may shift towards acquiring a national insurance intermediary license to cover the nationwide auto insurance market. The scale of premiums for new energy vehicles is substantial, projected to reach 454.1 billion yuan by 2030, prompting automakers to accelerate their entry into this sector. In the future, BYD may integrate insurance, charging, and financial services through a model combining its own insurance company and an intermediary license.
2. New Car Insurance Fraud Tactics Exposed
   According to reports, following the “coordinated car insurance” scheme, some vehicle owners have recently reported that fraudsters are using a so-called major liability insurance policy from insurance companies to deceive car owners. The specific process involves a technology company purchasing “product liability insurance” and “rental liability insurance” from an insurance company, which issues legitimate liability insurance policies. The fraudsters then present these policies to car owners, claiming that they have purchased insurance and that all they need to do is pay a fee to receive a corresponding policy for their license plate, completing the insurance process. Unaware of the scam, car owners pay the “premium” to the technology company, which issues a corresponding policy, falsely indicating that the car is covered. In reality, the technology company pays only a few thousand yuan in premiums while charging car owners between 8,000 to 10,000 yuan per vehicle. The policies provided to car owners are fake and not included in the insurance company’s underwriting list, and there is no underwriting information found in their system related to those vehicles. The fraudulent policies merely replicate legitimate policy numbers with the car owner’s license plate digitally altered. They also provide a so-called claims service phone number, which is unrelated to the insurance company. When an accident occurs, the car owners find themselves without any coverage and with no recourse for complaints.
3. ZF Receives 1 Billion Euro Order for Next-Generation Components
   On April 23, ZF announced at the 2025 Shanghai Auto Show that its next-generation components and parts, developed to meet the demand in the Chinese market, have recently gone into mass production and secured orders exceeding 1 billion euros from Chinese automakers. The planetary gear co-axial reducer, developed by ZF’s Chinese team, achieved mass production for the first time in the first half of this year. Furthermore, ZF’s electric drive plant in Hangzhou will begin mass production of the next-generation 800-volt motors in June, which will be used by domestic and international automotive manufacturers. Additionally, ZF’s electric drive plant in Shenyang will start mass production of the next-generation electric drive systems in the third quarter of this year, slated for use in international luxury automotive platforms.
4. Financial Issues at BYD 4S Store in Shenyang
   Recently, a BYD 4S store in Shenyang has been reported to be facing a financial crisis, with claims that over 60 car owners are unable to obtain vehicle registration certificates after purchasing cars. The store reportedly mortgaged these certificates to a third party and is unable to redeem them. Car owners have attempted negotiations without success, affecting popular models like the Qin PLUS and Dolphin. The store has ceased operations, and employees have not been paid, with the owner rumored to be missing. Local media investigations revealed that this issue has been ongoing, with some employees having gone unpaid for as long as six months. Currently, the store has no staff, and after-sales services have halted, with over 100 car owners seeking recourse.
5. Nissan Lowers Forecast, Expects Record Losses
   On April 24, Nissan Motor Co. announced a revision of its financial outlook for the fiscal year 2024 (April 2024 to March 2025). The company has lowered its annual sales forecast to 3.35 million units, estimating revenue of 12.6 trillion yen, an operating profit of 85 billion yen, and a net loss projected between 700 billion to 750 billion yen (approximately 35.5 billion to 38.1 billion yuan). This loss is expected to exceed the previous record of 684.3 billion yen set in fiscal year 1999.
6. Porsche Establishes R&D Center in China
   On April 23, Porsche officially announced the completion of a strategic upgrade to its R&D center in China. The newly constructed office in Shanghai is set to become operational in the second half of this year. This significant move marks a historic upgrade to Porsche’s R&D framework in China, enhancing its local development independence and furthering its localized innovation strategy of “In China, for China.”
7. CATL Partners with Five Major Automakers to Launch Ten New Battery Swap Models
   Recently, at the 21st Shanghai International Automotive Exhibition, CATL held a launch ceremony for its new battery swap models and signed a comprehensive strategic cooperation agreement with GAC Group. Together with FAW, Changan, BAIC, Chery, and GAC, CATL unveiled ten new battery swap models catering to various scenarios, including business, family travel, and youthful mobility. Notable releases include FAW’s first chocolate B-class battery swap sedan, the EH7, and Changan’s commuter sedan, the A05, among others.
8. JD Auto and State Grid e-Charging Collaborate for Green Travel Ecosystem
   On April 22, JD Auto signed a cooperation agreement with e-Charging, a specialized vehicle lifestyle service platform under the State Grid. The agreement outlines comprehensive collaboration in charging services, member benefits, and more, aiming to build an ecosystem that integrates charging, vehicle maintenance, and shopping services for new energy vehicles. Users can now search for “JD Charging” in the JD APP to enjoy a one-stop service experience.
9. Volkswagen Releases Three Concept Cars
   Ahead of the 2025 Shanghai Auto Show, Volkswagen unveiled three concept cars: the SAIC Volkswagen ID.ERA (a full-size range-extended hybrid SUV), the FAW-Volkswagen ID.AURA (a compact electric sedan), and the Volkswagen Anhui ID.EVO (a full-size electric SUV). These models were showcased at the auto show.
10. BYD Reports First Quarter Revenue Growth
    On April 25, BYD Company Limited released its financial report for the first quarter of 2025, showing significant revenue and profit growth. For the first quarter, BYD’s revenue reached 170.36 billion yuan, a year-on-year increase of 36.35%, and net profit was 9.15 billion yuan, up 100.38% year-on-year. This growth is primarily attributed to strong performance in the new energy vehicle sector, with BYD’s sales reaching 1,000,804 units, a 59.8% increase year-on-year, solidifying its position as the global leader in quarterly sales of pure electric vehicles.
11. U.S. Eases Safety Standards for Autonomous Vehicles
    According to reports, the U.S. Department of Transportation has relaxed some safety requirements for manufacturers developing autonomous vehicles to expedite their deployment and enhance competitiveness. Under the new regulations, if autonomous vehicles are used solely for research, demonstration, or other non-commercial purposes, manufacturers can apply for exemptions from certain safety regulations. Additionally, certain federal safety requirements applicable to human drivers, such as the installation of rearview mirrors, will no longer apply to autonomous vehicles. The threshold for reporting property damage in incidents involving autonomous vehicles will also be raised. Furthermore, the Department plans to establish nationwide regulations for autonomous driving technology to replace the current fragmented state-by-state approach.
12. Ministry of Commerce: Automotive Consumption Reform Pilot Expediting
    Recently, Li Gang, Director of the Consumer Promotion Department of the Ministry of Commerce, stated that the automotive consumption reform pilot is progressing rapidly, with high enthusiasm for pilot applications from various regions. Earlier this year, the Ministry of Commerce and eight other departments initiated the automotive consumption reform pilot, encouraging local innovations in breaking restrictive measures on car purchases and usage, as well as developing automotive modifications and RV camping, among other areas. This aims to expand the automotive consumption chain.