BYD’s Global Push Gains Momentum as New Markets Open

The competitive landscape for electric vehicles is shifting rapidly, with Chinese manufacturer BYD at the forefront of a significant international expansion. Recent developments across three continents, coupled with evolving trade policies and competitive dynamics, are reshaping the company's global footprint and market potential.

Europe has emerged as a critical battleground where BYD achieved a notable milestone in 2025, surpassing Tesla in new vehicle registrations within several key markets.

In Germany, BYD registrations skyrocketed to 23,306 units, representing an eightfold increase year-over-year. During the same period, Tesla's registrations fell to 19,390, nearly halving from the previous year. The United Kingdom told a similar story, with BYD's 51,422 registrations outpacing Tesla's 45,513. This positions Europe as a central arena for the intensifying rivalry between the two EV giants.

Adding further momentum, signals from Brussels provided a boost to investor sentiment. The European Commission is considering replacing existing punitive tariffs on Chinese electric cars with a minimum price system. This prospect triggered a rise of up to 4.8% in BYD's Hong Kong-listed shares. Under the proposed model, Chinese exporters would report minimum import prices, along with supply ceilings and future investment commitments in Europe. In return, the current additional tariffs—which range from 7.8% to 35.3% and were implemented in late 2024—could be removed or significantly reduced. In the first half of 2025, vehicles produced in China already captured a 6% share of EU auto sales, a 5-percentage-point increase from the prior year.

Strategic Entry into the Americas

Argentina's New Policy Creates Opportunity
BYD is capitalizing on a newly opened window in South America. This week, the company shipped over 5,800 electric and hybrid vehicles to Argentina, marking its first major market entry into the country. The shipment arrived at the port of Zárate aboard the container ship BYD Changzhou after a 23-day sea voyage.

This move is a direct response to a new customs policy under President Javier Milei. Argentina has instituted a duty-free quota allowing the import of 50,000 electric and hybrid cars this year without the previously levied tariffs. Prior 35% import duties had largely kept Chinese manufacturers out of the market. Key details of the Argentina expansion include:
* An initial delivery exceeding 5,800 vehicles.
* A duty-free quota of 50,000 electric and hybrid vehicles for 2026.
* A price ceiling of $16,000 USD for eligibility for the tariff exemption.
* A 57% year-over-year increase in imports from China to Argentina in 2025.

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

Canada Lowers Trade Barriers
North America is also showing signs of opening up. Canada has substantially relaxed its trade policy for Chinese electric vehicles, slashing tariffs on China-made EVs from 100% down to 6.1%. The new agreement permits up to 49,000 imported electric vehicles from China annually, with the quota potentially rising to 70,000 units over five years. Half of the annual quota is reserved for vehicles priced under 35,000 Canadian dollars—a segment well-aligned with BYD's cost-oriented production model. However, BYD does not currently sell passenger cars in Canada, meaning regulatory approvals from Transport Canada would be required before it can benefit from the new conditions.

Partnership Talks and Competitive Tensions

Reports of potential cooperation talks between Ford and BYD have drawn additional attention, with the companies reportedly discussing a possible battery partnership for hybrid vehicles. These considerations have not been without criticism. US political advisor Peter Navarro publicly warned that such collaboration could grant BYD excessive influence over global EV production. He labeled BYD the "latest king of predatory pricing" and asserted its goal was control of worldwide EV manufacturing, suggesting Tesla would become "a footnote if this continues."

This commentary underscores a significant shift: BYD overtook Tesla in sales volume in 2025, cementing its position as the world's largest electric vehicle manufacturer. Tesla, for its part, has reported declining sales for two consecutive years.

Financial Profile and Market Valuation

Trading on the Hong Kong exchange, BYD currently commands a market capitalization of approximately 938 billion Hong Kong dollars. The company's price-to-earnings (P/E) ratio, based on the past twelve months, stands at about 63.5. Its net margin is around 4.6%, reflecting a high-volume business model with relatively thin margins per vehicle.

The forward-looking picture tells a different story. The forward P/E ratio is approximately 17, indicating the market is pricing in significantly higher future earnings. This optimism is driven by the company's international expansion, potential new partnerships, and continued market share gains against established competitors.