BYD expects EV exports to climb 15% due to overseas demand
BYD Co. indicated to analysts that exports this year are likely to exceed its previous target by 15 percent, according to sources, as the world’s largest electric vehicle manufacturer relies on growth in international markets to offset a decline in domestic sales. During an analyst briefing on Monday, following disappointing fourth-quarter earnings, BYD management conveyed to attendees that the automaker is optimistic about reaching 1.5 million vehicle exports by 2026, according to individuals. That’s an increase from the 1.3 million target that the Shenzhen-based carmaker revealed in January.
BYD’s optimistic export outlook comes on the heels of disappointing results, marked by the company’s first annual profit decline in four years, despite having surpassed Tesla Inc. as the world’s leading EV manufacturer. Overseas sales have emerged as one of the few bright spots for BYD recently, surpassing 1 million last year, while domestic sales have stalled.
That is intensifying the pressure on its overseas ambitions to yield results. Citigroup Inc. projected that BYD’s car sales in China will become unprofitable in the first quarter, compelling the company to depend solely on exports for profitability in its core auto business. Thus far, BYD’s models have demonstrated significant popularity overseas — a welcome respite considering its difficulties within China. However, this endeavor comes with significant expenses, as the company broadens its production presence in regions such as Brazil, Hungary, and Southeast Asia to navigate trade barriers effectively.
Batteries — its foundational business — is also one of BYD’s significant investments. In addition to introducing new-generation blade batteries, the carmaker has presented a system capable of recharging a battery from 10 percent to 70 percent in just five minutes, with the potential to nearly reach full charge in nine minutes. According to sources, BYD plans to introduce ultra-fast charging stations beyond China starting in 2027.
