BYD’s Compensation Pledge and Homegrown Processor Signal a New Phase in the Autonomy Race
03.06.2026 - 04:47:41 | boerse-global.de
BYD’s Hong Kong-listed shares jumped 6.61% to close at HK$96.75 on June 2, as investors digested two major strategic moves that together redefine the company’s approach to autonomous driving. The Chinese electric-vehicle giant has not only accepted unlimited liability for accidents involving its urban navigation system but also unveiled a proprietary chip capable of powering Level 3 and Level 4 autonomy — a double bet that links consumer trust to technological independence.
The market’s enthusiasm came despite an otherwise bumpy May sales report. BYD sold 383,453 new-energy vehicles last month, a modest 0.26% increase year-on-year that snapped an eight-month streak of declining volumes. The recovery was almost entirely export-driven: overseas shipments surged 80.4% to 160,644 units, meaning international markets now account for 42% of total sales. Domestically, sales slumped roughly 24%, though individual model lines still impressed. The Yuan and Song series each topped 50,000 units, the Sealion family delivered 42,615, and the Fangchengbao off-road brand moved more than 30,000 vehicles.
BYD’s ambition abroad is backed by hard logistics. Its first dedicated car carrier, the “BYD Zhengzhou,” recently unloaded 4,809 vehicles in Melbourne — three-quarters of them already sold. The company aims to ship 30,000 cars to Australia between April and June. In Europe, where it held a 2.2% market share in April (EU, EFTA and UK), local production is expected to begin by 2028. India will see its first plug-in hybrid SUV on June 9, likely the Atto 2 or Sealion 6.
Should investors sell immediately? Or is it worth buying BYD?
But the headline-grabbing news revolves around safety and silicon. On May 28, BYD launched a one-year “City Navigation Safety Net” program for users of its DiPilot A and DiPilot B systems. If the CNOA urban navigation feature intervenes correctly and a collision still occurs, BYD will cover all direct economic damages — vehicle repairs, third-party property damage and personal injury costs — without any payout cap. The guarantee also spares customers from higher commercial insurance premiums the following year. The first known case emerged the very next evening in Shenzhen. BYD completed its technical check within a day, confirmed the system was used properly, and approved full reimbursement less than 24 hours after the owner’s public post. Even paint-protection film damage was included. The protection applies only to urban CNOA navigation, not to adaptive cruise control, lane centring or highway navigation.
That promise dovetails with BYD’s chip strategy. Late last month the company unveiled the Xuanji A3, a self-developed 4-nanometre processor delivering 700 TOPS per chip. Three combined offer over 2,100 TOPS, enough to handle Level 3 and Level 4 autonomous driving. Mass production is already underway. BYD frames the moves as part of its “Intelligent Driving for All” strategy, offering what it calls the industry’s first dual coverage for smart parking and urban NOA. The guarantee is tied to new buyers and existing customers who upgrade to God’s Eye 5.0, a system offered as a 12,000-yuan option. BYD now has over 3.15 million vehicles equipped with intelligent driving aids on the road, generating more than 200 million kilometres of real-world data daily.
The financial side carries its own tensions. BYD received 12.47 billion yuan (roughly $1.8 billion) in operating subsidies in 2025, and analysts warn profitability could suffer if state support wanes. The company also committed in June 2025 to pay suppliers within 60 days, slashing former terms of 275 to 300 days — a move that stabilises the supply chain but may pressure cash flow. For the stock, the average of 28 analyst targets compiled by Investing.com stands at HK$124.59, with a range from HK$93 to HK$148.64. CITIC Securities recently reiterated a “buy” rating with a HK$130 target.
The real test for BYD’s autonomy gamble lies in the claims ratio. A low frequency of accidents and transparent technical reviews would cement its position in intelligent driving. A surge in costly incidents could turn the guarantee from a marketing advantage into a margin headache. The annual general meeting on June 9, which will also decide the 2025 final dividend, offers investors the next chance to gauge management’s confidence in that bet.
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