The electric vehicle landscape is witnessing a dramatic continental split as BYD experiences sharply contrasting fortunes in its home market versus its international operations. While the Chinese automaker faces mounting challenges domestically, its overseas business—particularly in the United Kingdom—is delivering explosive growth that has investors questioning whether international success can compensate for home market difficulties.
UK Market Defies Expectations With Record Performance
BYD’s performance in the United Kingdom has reached unprecedented levels, with September sales surging to 11,271 vehicles. This represents an extraordinary 880% increase compared to the same month last year, catapulting the UK to become BYD’s largest market outside China. The achievement is particularly significant given that Chinese EV manufacturers are excluded from Britain’s latest subsidy programs, indicating that BYD’s growth is driven by market demand rather than government incentives.
China’s Competitive Squeeze Intensifies
Meanwhile, BYD’s core Chinese market reveals a different story. The company reported its first quarterly sales decline since 2020, with third-quarter deliveries dropping 2.1% to 1.106 million units. September proved especially challenging, recording a 5.5% decrease in deliveries—the first monthly contraction since February 2024.
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Key domestic challenges include:
* Six consecutive months of declining plug-in hybrid sales
* A downward revision of internal annual targets to 4.6 million vehicles
* Sustained margin pressure from intense price competition that began in 2023
Global Leadership Position Strengthens
Despite domestic headwinds, BYD continues to expand its global footprint at an accelerated pace. International sales skyrocketed 146.42% during the third quarter, underscoring the company’s successful diversification strategy. More importantly, BYD has extended its lead over Tesla in the battery-electric vehicle segment, delivering 390,000 more units than its American rival during the first nine months of the year. This performance trajectory suggests BYD is positioned to retain its title as the world’s leading electric vehicle manufacturer through 2025.
Market Sentiment Cools Ahead of Earnings
Growing market skepticism has prompted several financial institutions to adjust their outlook on BYD shares. Both Jefferies Financial Group and Erste Group Bank have downgraded the stock to “Hold” ratings. Investor attention is now firmly fixed on the quarterly results scheduled for late October, with particular focus on whether intensifying domestic price competition has begun to erode profit margins. The forthcoming earnings report is expected to provide crucial direction for BYD’s share price movement in the coming months.
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