BYD Lands 100,000‑Vehicle Export Orders from Brazil Plant as Stock Hovers Near One‑Year Low

BYD is aggressively scaling its overseas manufacturing footprint even as its shares languish close to a 52‑week low. The Chinese electric‑vehicle giant has secured export orders for 100,000 vehicles from its Brazilian factory in Camaçari, Bahia — half destined for Argentina and the other half for Mexico. The facility, which currently produces plug‑in hybrids and pure EVs such as the Dolphin Mini and Song Pro, has an annual capacity of 150,000 units that BYD plans to ramp up to 600,000.

Local production in Brazil is designed to cut logistics costs and sidestep trade barriers. The company aims to achieve a local value‑added share of 50% by early 2027. The export orders underline a broader push: BYD intends to sell 1.5 million vehicles in international markets by 2026, up from 1.05 million last year. In Europe, its Hungarian factory is scheduled to start output in the fourth quarter of 2026, and the automaker plans to install 3,000 fast‑charging points across the continent by the end of 2027.

Yet this ambitious expansion stands in sharp contrast to the stock’s performance. BYD shares trade at around €9.49, just a whisker above the 52‑week low of €9.25. The equity has lost roughly 13% so far this year and sits more than 13% below its 200‑day moving average. The relative strength index stands at 33.7, signalling the stock is technically near oversold territory. Over the past twelve months, the decline has been steeper — about 34% — as persistent margin pressure and a bruising price war in China have kept investors on the sidelines.

The domestic market itself tells a paradoxical story. In early June, new‑energy vehicles — battery‑electric cars and plug‑in hybrids — accounted for nearly 67% of all new‑car sales in China, a record high. BYD held onto its top spot with a market share of almost 22% in May, corresponding to roughly 207,000 vehicles delivered — a slight month‑over‑month improvement but a year‑on‑year decline. However, total passenger‑car sales contracted by 23% in the same period, and petrol‑powered models dropped out of the top‑ten bestseller list for the first time ever. The soaring EV penetration masks a fundamental weakness in overall demand, exacerbated by shrinking government subsidies at home.

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

To compensate, Chinese automakers are pivoting to exports. Passenger‑car exports from China surged 73% in May, and EV exports more than doubled. BYD’s own export drive is gaining momentum, but the stock has yet to reflect the shift.

On the battery front, BYD is also recalibrating its strategy. It has developed a third‑generation sodium‑ion platform (NFPP) that it intends to target primarily at stationary energy storage rather than passenger vehicles. The cost goal is around 0.30 yuan per watt‑hour by 2027, and the 189‑Ah cell architecture is designed for large‑scale grid installations. The company’s Blade battery technology remains the bedrock for its cars.

During the annual general meeting, chairman Wang Chuanfu sought to reassure shareholders, predicting that BYD would become the world’s largest automaker within five years. He noted that short‑term sales volumes depend heavily on battery production capacity. But the market remains focused on margins: the ongoing price war in China leaves little room for error.

Whether the Brazilian export orders and the European factory timeline can stabilize the share price will hinge on how quickly BYD can translate its manufacturing muscle into sustainable profitability. The next major test comes with the second‑half 2026 production numbers. Until then, the €9.25 support level may remain in the crosshairs.