BYD Co. has announced plans for further share repurchases, aiming to address a recent downturn in its stock price, which hit a 15-month low earlier this month. The Shenzhen-based automaker also revealed intentions to enhance its product lineup by increasing production of luxury models this year, expanding beyond its reputation for stylish yet budget-friendly vehicles. Investor concerns about a potential industry price war and broader worries regarding China's economic performance have contributed to BYD's stock market struggles.

The company's Hong Kong-listed shares closed down 1.9% on Monday, reflecting a cumulative loss of around 13% since the beginning of the year. In response, BYD introduced a revamped version of its flagship Qin Plus plug-in hybrid sedan at a reduced price, intensifying competitive pressures in the market. This move prompted rival SAIC-GM-Wuling Automobile Co. to announce a price cut for its Xingguang sedan, illustrating the ongoing price competition in the industry. Despite record deliveries in the fourth quarter, which propelled BYD to become the world's leading electric car seller, the company's profitability has faced challenges.