BYD Faces Multiple Challenges: Insurance Brokerage Shutdown, Dealership Crisis, and New Car Insurance Scams Unveiled

Summary of Recent Developments in the Automotive Industry

1. BYD Cancels Insurance Brokerage – BYD Insurance Brokerage Co., Ltd. has submitted an application for deregistration. Established in March 2022 with a registered capital of 50 million yuan, the company has yet to obtain insurance business qualifications after three years of approval processes. Previously, BYD acquired Yi’an Property Insurance, rebranding it as Shenzhen BYD Property Insurance, but its operations are currently limited to eight provinces and municipalities. Analysts suggest that BYD may be looking to acquire a national insurance intermediary license to expand its reach in the auto insurance market. The market for new energy vehicle insurance is substantial, projected to reach 454.1 billion yuan by 2030, prompting automakers to accelerate their presence in this sector. In the future, BYD may integrate insurance, charging, and financial services through a model combining its own insurance company and intermediary licenses.
2. New Car Insurance Scam Exposed – Recent reports from “Insurance City Information” reveal that a new scam targeting car owners has emerged, which is even more deceptive than previous “pool insurance” schemes. In this new tactic, fraudulent individuals present themselves as representatives of insurance companies, showcasing purported liability insurance policies. The process involves a technology company purchasing “product liability” and “rental liability” insurance from an actual insurer, which then issues legitimate-looking policies. These scammers display these policies to car owners, claiming they have purchased insurance. Unsuspecting car owners pay premiums to the tech company, which then issues fake policy endorsements, falsely indicating that their vehicles are insured. In reality, the tech company only pays a fraction of the premium, while charging car owners between 8,000 to 10,000 yuan. The endorsements are not recognized by any insurance company, leaving car owners without coverage and recourse in the event of an accident.
3. ZFW Receives €1 Billion Order for New Generation Components – On April 23, ZFW announced at the 2025 Shanghai Auto Show that it has begun mass production of its new generation components and systems tailored to meet Chinese market demands, securing orders exceeding €1 billion from local automotive manufacturers. The company’s team in China developed a planetary gear coaxial reducer, which is set to begin production in June of this year. Additionally, its electric drive facility in Shenyang will start mass production of next-generation electric drive systems in the third quarter, intended for international luxury automotive platforms.
4. BYD 4S Store in Shenyang Faces Financial Crisis – Recently, a BYD 4S dealership in Shenyang has been reported to be in financial distress, leaving over 60 car owners unable to obtain vehicle registration certificates for cars they purchased. Complaints indicate that the dealership has mortgaged these certificates to a third party and is unable to redeem them. The dealership has ceased operations, employees have not been paid, and the owner is reportedly missing. Local media investigations have confirmed that the issue of unpaid wages has persisted for several months, affecting various departments. The dealership, part of the Liaoning Xingqi Group established in 2000, has grown to become one of the largest new energy vehicle dealers in Northeast China.
5. Nissan Lowers Forecast, Expects Up to ¥750 Billion Loss – On April 24, Nissan revised its forecast for the 2024 fiscal year (April 2024 to March 2025), lowering expected sales to 3.35 million vehicles, with projected annual revenue of ¥12.6 trillion and operating profit of ¥85 billion. The company now anticipates a net loss of between ¥700 billion and ¥750 billion, surpassing previous estimates and making it the largest loss in Nissan’s history.
6. Chinese Automakers See Sales Surge in Europe – According to preliminary statistics from the market analysis firm Dataforce, Chinese automotive brands experienced a 78% year-on-year increase in sales in Europe during the first quarter, reaching 148,000 units and raising their market share from 2.5% to 4.5% compared to the same period in 2024.
7. Porsche Establishes R&D Center in China – On April 23, Porsche announced the completion of a strategic upgrade for its R&D center in China, with a new office in Shanghai set to commence operations in the second half of this year. This move signifies a historic enhancement of Porsche’s local R&D capabilities and reinforces its commitment to localized innovation strategies.
8. CATL Collaborates with Five Major Automakers on New Models – Recently, CATL held a launch event at the 21st Shanghai International Auto Show, unveiling ten new battery swapping models developed in partnership with major car manufacturers including FAW, Changan, BAIC, Chery, and GAC. These models cater to various scenarios, including business, family, and youth-oriented designs.
9. JD Auto Partners with State Grid for Green Travel – On April 22, JD Auto signed a cooperation agreement with the State Grid’s e-charging service platform. Under the agreement, both parties will work together on charging services and member benefits, aiming to create a comprehensive ecosystem for new energy vehicles integrating charging, maintenance, and shopping.
10. Volkswagen Introduces New Range-Extended Concept Cars – On the eve of the 2025 Shanghai Auto Show, Volkswagen unveiled three concept cars, including the SAIC Volkswagen ID.ERA (a full-size range-extended hybrid SUV), FAW Volkswagen ID.AURA (a compact electric sedan), and the Anhui Volkswagen ID.EVO (a full-size electric SUV).
11. BYD Reports Significant Growth in Q1 Revenue and Profit – On April 25, BYD announced its financial results for the first quarter of 2025, reporting revenue of 170.36 billion yuan, a year-on-year increase of 36.35%, and a net profit of 9.15 billion yuan, doubling from the previous year. This growth is attributed to the strong performance of its new energy vehicle segment, with sales reaching 1,000,804 units, marking a 59.8% increase year-on-year and solidifying BYD’s position as the global leader in quarterly electric vehicle sales.
12. U.S. Eases Safety Requirements for Autonomous Vehicles – The U.S. Department of Transportation has announced relaxed safety requirements for manufacturers developing autonomous vehicles to expedite their deployment. Under new regulations, manufacturers can apply for exemptions from certain safety standards if the vehicles are used for research, demonstration, or non-commercial purposes. Additionally, the threshold for reporting property damage in minor accidents involving autonomous vehicles will be raised.
13. Ministry of Commerce: Accelerating Auto Consumption Reform Pilot – The Director of the Consumption Promotion Department of the Ministry of Commerce, Li Gang, reported that the pilot program for automotive consumption reform is advancing rapidly, with high enthusiasm for participation from various regions. This initiative supports local reforms aimed at eliminating restrictive measures on car purchases and promoting automotive modifications and RV camping.