BYD’s Global Expansion Strategy Emerges Amid Domestic Challenges

Chinese electric vehicle manufacturer BYD is navigating turbulent market conditions at home while charting an ambitious course for international growth. Recent developments reveal a strategic pivot as the company adjusts to fierce price competition in its domestic market.

Market analysts from Citi disclosed this week that BYD has substantially revised its internal sales projections for 2025 downward. The automaker now anticipates selling approximately 4.6 million vehicles next year, representing a significant 16% reduction from earlier, more ambitious targets.

This recalibration comes as China's EV sector experiences intense pricing pressures throughout 2025. BYD participated in this competitive environment by implementing price reductions across 22 models to maintain market position. While this strategy successfully preserved market share, it has placed considerable strain on the company's profit margins.

International Markets Offer Growth Pathway

Despite domestic headwinds, BYD is aggressively pursuing expansion beyond China's borders. The company has established an ambitious export strategy targeting 1.5 to 1.6 million vehicles for international markets in 2026, with particular focus on Europe, Latin America, and Southeast Asia.

Should investors sell immediately? Or is it worth buying BYD?

Several developments underscore this global push:

• BYD Shark 6: Utility vehicle variants were recently observed during test drives
• Denza B5 and B8: Luxury models configured for right-hand drive markets are in development
• Market Launch: Expected between late 2025 and 2026

Share Performance Reflects Market Uncertainty

BYD's stock closed at 92.70 CNY on Friday, registering a decline of nearly 1%. This places the equity well below its 52-week peak of 138.99 CNY, with the psychologically significant 100 CNY threshold remaining elusive.

Technical indicators continue to suggest persistent selling pressure. Market observers note that only a sustained breakthrough above the 100 CNY level would signal improved technical conditions for the stock.

The critical question remains whether BYD can successfully execute its global expansion strategy. Initial quarterly reports in early 2026 will provide crucial evidence regarding the effectiveness of the export initiative and the ultimate impact of domestic price competition on profitability.