BYD's Home Market Cools as Exports and Trucks Carry the Load
Published on 10/02/2026 at 20:31 | Editorial boerse-global.de
BYD shares came under pressure on Friday, with the stock losing 2.3% to trade at EUR 8.40 as a broad sell-off in Hong Kong weighed on Chinese electric-vehicle makers across the board. The Hang Seng Index shed 2.6% by midday, according to Reuters, dragging the whole sector lower as rising US Treasury yields and firmer oil prices sapped investors' appetite for risk.
The decline was compounded by a cautious note from the analyst community. JPMorgan downgraded BYD from "Overweight" to "Neutral" and slashed its price target to 88 HK$ from 124 HK$, pointing to a soft domestic demand picture in China, rising procurement costs, political uncertainty and tariffs that could hamper Chinese manufacturers' overseas expansion. The move followed Citigroup's assessment that wholesale sales of new-energy vehicles in China during September came in modestly below market expectations, adding to the sector-wide headwind.
A Split Performance Beneath the Surface
The market's wariness belies a more nuanced operational picture. BYD reported worldwide sales of 463,561 vehicles for September, a gain of roughly 17% compared with the same month a year earlier. Growth was powered overwhelmingly by demand beyond China's borders: exports of passenger cars and pickups jumped 153.9% year on year to 179,877 units, according to Reuters, offsetting continued weakness and intensifying competition at home. Domestic sales, by contrast, fell by nearly 13% in September.
Against the previous month, the company's deliveries rose 5%, outpacing the broader market's performance even as concerns about the pace of Chinese growth dominated trading floors.
Should investors sell immediately? Or is it worth buying BYD?
Regulatory and Infrastructure Developments
September also brought a regulatory obligation. China's market regulator ordered the recall of 183,211 vehicles from the Qin and Tang model lines — older-model-year cars that may develop problems with the brake pedal stopper cap.
On the infrastructure front, BYD pressed ahead with its charging network, bringing its 2,000th fast-charging station on Chinese highways into service during the month. The milestone was reached well ahead of the company's original year-end target.
Betting Beyond the Passenger Car
BYD is also looking for additional sales opportunities outside its traditional passenger-vehicle segment. In mid-September, the company presented its European commercial-vehicle lineup at the IAA Transportation trade fair, unveiling among other products an electric tractor unit delivering up to 1,000 horsepower with a range of 600 kilometers.
Investors now face the question of whether overseas expansion and the push into commercial vehicles will be enough to offset the persistent headwinds in BYD's home market on a lasting basis.
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