AsianFin -- BYD, the world’s largest electric vehicle (EV) manufacturer, saw its production decline for a second consecutive month in August, marking the company’s first back-to-back monthly contraction since 2020. The slowdown underscores a strategic pause in BYD’s years-long expansion.

According to a monthly filing with the Hong Kong Stock Exchange on Monday, BYD produced 353,090 EVs and plug-in hybrids (PHEVs) globally last month, down 3.78% year-over-year. This follows a 0.9% drop in July, the first consecutive decline since June and July 2020.

Reuters reported in June that BYD had slowed production by reducing shifts at certain Chinese factories and postponed plans to add new production lines, signaling a deliberate easing of output growth.

Domestic sales also contracted. BYD sold 292,813 vehicles in China in August, down 14.3% year-over-year and marking the fourth straight month of decline. Despite the slowdown at home, the company’s global sales remained slightly higher, driven in part by rapid growth in European markets.