BYD’s Premium Brand Hits 400,000 as Home-Market Profit Slump Widens
23.05.2026 - 11:53:30 | boerse-global.de
BYD’s upmarket Fang Cheng Bao division crossed the 400,000-vehicle sales milestone this week, but the celebratory moment sits awkwardly alongside a first-quarter profit crash that has pushed the stock close to its 52-week low. The Tai 7 SUV that marked the 150,000th unit of its own line-up also underlined the speed of the premium brand’s rise: April deliveries hit roughly 29,200 cars, a 190 per cent leap from a year earlier, and the January-to-April tally of around 93,700 units represents a 220 per cent gain.
The stark contrast inside the company mirrors a broader split between BYD’s domestic struggles and its booming international business. In China, April passenger-vehicle sales fell 15.7 per cent year-on-year to 314,100 units — the eighth consecutive monthly decline. Over the first four months, new-energy vehicle sales dropped 26 per cent to about 1.02 million units. That weakness dragged first-quarter net profit down 55.4 per cent to 4.09 billion yuan, as an unrelenting price war and higher hardware costs ate into margins. A silver lining: gross margin improved sequentially, suggesting cost controls are taking effect.
Overseas, the picture is far brighter. BYD shipped 134,542 vehicles abroad in April, up 70.9 per cent from last year, meaning nearly half of total sales came from international markets. For the January-to-April period, around 456,000 vehicles were sold outside China, a near-60 per cent jump. The full-year export target stands at 1.5 million units. European registrations in the EU, EFTA and UK surged more than 155 per cent in the first quarter, and the company is deepening its local footprint to circumvent the 27 per cent EU import tariff on Chinese EVs. Its plant in Szeged, Hungary, will start with an annual capacity of 150,000 vehicles, eventually doubling to 300,000, though BYD expects at least two years of underutilisation. Additional sites in Turkey and Spain are under review, and Vice-President Stella Li has pledged to double the European dealer network to 2,000 outlets in 2026.
Should investors sell immediately? Or is it worth buying BYD?
Production lines are under strain as BYD simultaneously switches to second-generation Blade battery technology, a conversion that is lengthening delivery times for several core models. That operational friction comes as the company also explores strategic moves beyond electrification. Reports indicate BYD has held talks with former Red Bull team principal Christian Horner over a possible Formula 1 entry, a move that would sharply raise its international brand profile. In Europe, the carmaker is negotiating to buy unused production capacity from Stellantis and other manufacturers, a strategy that would cut logistics costs and reduce tariff exposure.
The Hong Kong-listed H-shares closed Friday at 91.60 Hong Kong dollars, up 1.16 per cent on the day but only about 3.5 per cent above the February trough of 88.50 HKD. The 52-week range stretches from that low to 159.27 HKD. Of 26 analysts covering the stock, 25 rate it a buy, with a consensus target of 124.37 HKD. Goldman Sachs sees the first quarter as the bottom for revenue and profit, forecasting a gradual recovery driven by fast-charging models, and sets a 134 HKD target. BNP Paribas stands alone with an “underperform” rating and an 87 HKD price objective, citing the sharper-than-expected earnings decline.
Key dates lie ahead. On 28 May, BYD will unveil its autonomous-driving strategy, detailing software and hardware integration. The next dividend ex-date falls on 11 June, and half-year results are due on 28 August. Whether the company can revive domestic momentum in the second and third quarters will determine the trajectory for the second half of the year. Export growth alone has not been enough to close the valuation gap — BYD needs its home market to start growing again.
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