Chinese electric vehicle manufacturer BYD is making an aggressive push into international markets as it confronts headwinds at home. The company aims to nearly double its overseas vehicle sales within a year, prompting a 2.3 percent stock price increase in Hong Kong trading. However, questions remain about whether this expansion can drive a sustained recovery for the automaker.
Domestic Market Pressures Intensify
BYD’s international strategy comes as a necessary response to mounting difficulties within China. The company has reduced its overall 2025 sales target by 16 percent to 4.6 million vehicles amid an increasingly competitive landscape.
A brutal price war has severely compressed profit margins across the Chinese EV sector. BYD felt this impact directly in the third quarter, reporting a 33 percent decline in earnings. The trend continued into October, with sales of electric and hybrid vehicles dropping 12 percent year-over-year.
Ambitious International Targets Revealed
The automaker has outlined specific objectives for its global expansion. BYD projects overseas sales will reach between 900,000 and one million vehicles in 2025, followed by a substantial increase to 1.5-1.6 million units in 2026.
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The company’s three-pillar approach divides its international focus equally across:
* European markets
* North American operations
* ASEAN region countries
In a direct challenge to competitors, BYD has positioned its new Atto 1 model as Australia’s most affordable electric vehicle, with a starting price equivalent to €14,500. The company also introduced pricing for its Atto 2 model in the Australian market.
Market Reaction Remains Cautious
Investors showed measured optimism following the announcement, with BYD shares closing at HK$102.80 in Hong Kong trading. Despite the 2.3 percent gain, the stock continues to trade significantly below its 52-week high.
Market observers are watching closely to determine if BYD can successfully translate its domestic market dominance to international success. The company’s upcoming European model launches will serve as a critical test of whether its low-price strategy can achieve global appeal without further compromising profitability.
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