BYD’s Global Ambitions: Can Overseas Growth Offset Domestic Headwinds?

The Chinese automotive giant BYD is accelerating its international strategy, setting a definitive sales target for markets outside China for 2026. This push comes as growth in its home market decelerates amid intense price competition, leading investors to question whether overseas expansion can sufficiently counterbalance domestic softness.

BYD’s domestic market, China, presents increasing challenges. A protracted price war in the automotive sector, ongoing since 2023, has compressed margins across the industry and prompted regulatory warnings about excessive competition. Reflecting this pressure, BYD’s domestic sales growth slowed to 7.7% last year, marking its weakest performance in five years.

In response, the company is aggressively diversifying its geographic footprint. Read more...