According to an announcement from the Pingshan District Fire and Rescue Bureau in Shenzhen, a fire broke out in BYD’s three-dimensional garage on Maluan Street, Pingshan District, on April 14, 2026. The fire lasted for five hours, and thankfully, there were no casualties. BYD released a statement confirming that the garage is a dedicated parking area for test and scrapped vehicles only, so the incident did not represent a serious blow to their operations.
The fire initially sparked a rumor that a BYD factory had caught fire after a blade battery self-ignited, causing thousands of cars to burn. While BYD’s statement helped falsify the rumor, the impact remained: BYD’s shares took a hit at the opening of the A-share market.
The question of what started the fire was addressed thoroughly. Since the garage stored test and scrapped vehicles, not mass-produced new cars, vehicles for sale, battery production lines, or vehicle assembly workshops, the rumor that a blade battery caused the fire was quickly ruled out. Instead, the fire was determined to have been caused by a third-party construction unit that failed to take proper fire-prevention measures while dismantling equipment. BYD made it clear that the entire incident had nothing to do with, and did not affect, BYD’s production technology, processes, or quality.
Nevertheless, the rumor affected public opinion of BYD, causing the company’s shares to open lower on the A-share market on April 14. The largest drop of the day exceeded 1%, with the stock price hitting a low of 103.33 yuan per share. By midday, the decline had narrowed to around 0.6%, with shares trading at 103.62 yuan.
Following BYD’s recent expansion, speculation arose about the timing of the fire relative to it. Even with BYD’s reassurances, the capital market grew concerned about how well prepared BYD’s safety systems are for such rapid growth. BYD is very popular domestically and is fast becoming a household name internationally. The stock decline in this context reflected doubts about BYD’s management of its upscaling following the accident.
In the electric vehicle ecosystem, where competition is fierce and public tolerance for safety incidents is low, the fire drew significant attention. Despite BYD’s official statement, some consumers remained worried about the possibility of spontaneous combustion in BYD vehicles. The actual cause, a third-party construction error, did not fully ease those concerns, as consumers wondered whether other overlooked factors could prove dangerous on a personal level. In response, BYD has launched a comprehensive safety inspection of all its fire protection equipment, materials, and construction management. The company has also suspended all third-party construction projects and announced specialized safety training to address operational and outsourcing loopholes.
Source: Autohome
Dollars loves following the latest innovations in automobile technology and sharing insights.
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