BYD Raises Sales Target While Profit Slump Tests Global Ambitions
27.05.2026 - 07:52:11 | boerse-global.de
The Chinese electric vehicle giant is playing a high-stakes game of volume versus margin. BYD has lifted its 2026 sales forecast to between 5.0 million and 5.5 million New Energy Vehicles, even as first-quarter earnings tumbled by more than half. The revised guidance, up from an earlier range, underscores the company’s determination to defend its domestic lead while pushing into overseas markets with a wave of new models.
Global product blitz gathers pace
The expansion strategy is playing out simultaneously on three continents. In Australia, BYD unveiled the Shark 6 Performance version of its plug-in hybrid pickup at the end of May. The flagship variant delivers 350 kW and 700 Nm of torque, with a towing capacity of 3.5 tonnes. Priced at A$62,900 plus on-road costs, it comes with a redesigned interior and a new off-road mode called “Crawl” — features that will later roll out to other Shark models via over-the-air updates.
Europe is getting a model tailored specifically for its customers. The Dolphin G DM-i, which BYD claims is the first vehicle developed from the ground up for the continent, boasts a combined range of over 1,000 kilometres. Stella Li, Executive Vice President, confirmed the global premiere will take place in Berlin in June. The push is already showing results: first-quarter EU registrations hit 50,646 units, a 169.7% surge year-on-year, lifting BYD’s market share to 1.8%. Including the UK and EFTA states, the tally reaches 73,847 vehicles and a 2.1% share. In Spain, the Atto 2 DM-i tops the plug-in hybrid segment.
China offensive: two models in three days
Back home, the pace is equally aggressive. On May 26, BYD launched the Sealion 06 DM-i, a family-oriented plug-in hybrid SUV positioned in the fiercely competitive mass market. Available in four trims ranging from 129,900 to 159,900 yuan, the vehicle is equipped with a LiDAR sensor and the “God’s Eye” driver assistance system. Battery-only range stands at 205 or 310 kilometres under CLTC, with a combined range exceeding 1,845 kilometres.
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Just two days later came the Song Ultra DM-i, which uses the fifth generation of BYD’s DM hybrid technology. It offers battery options of 26.6 kWh or 38 kWh, delivering the same electric ranges of 205 and 310 kilometres respectively. The rapid-fire launches are designed to lock in buyers in a market where price wars and generous incentives are the new normal. BYD’s own package includes zero-down payment plans, extended credit terms, and trade-in bonuses of up to 5,000 yuan.
Driver assistance cost goes up
In a move that caught some observers off guard, BYD raised the price of its optional God’s Eye B system from 9,900 to 12,000 yuan, effective May 1. The company cited higher costs for global memory hardware. The price hike adds another layer to the margin story: even as the company fights for volume with affordable models, it is trying to extract more from higher-tech features.
First-quarter numbers reveal the strain
The product offensive comes against a backdrop of weakening profitability. First-quarter revenue fell 11.82% year-on-year to 150.23 billion yuan (roughly $22 billion), though that figure comfortably beat analyst estimates of around 140 billion yuan. Net profit attributable to shareholders plunged 55.38% to 4.08 billion yuan. The contrast between top-line resilience and bottom-line pain reflects heavy spending on production capacity and overseas infrastructure — a deliberate bet that short-term margin compression will pay off as global sales scale.
April sales data hints at the challenge ahead. BYD sold 321,123 NEVs during the month, a sequential improvement from March but down from the same period last year. Domestic retail sales of all NEV passenger cars in China came in at 883,000 units, 5% lower than a year earlier, though 4% higher than March. BYD maintained its No.1 market position with a 21.4% share, but the domestic slowdown underscores that market leadership alone does not guarantee margins.
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Export target holds firm
Overseas shipments hit a record in April, and the company is sticking to its unchanged export target of 1.5 million units for the full year. The export ambition is critical to absorbing the production capacity being built globally. Analysts view the current earnings dip as a transitional phase: if BYD can hit the 1.5-million-export milestone, the heavy upfront investments will begin to pay dividends. Europe and Australia are already providing early proof points.
The Sealion 06 DM-i and its stablemates give BYD a powerful volume argument in the near term. But the real test will come in the monthly delivery numbers. If demand picks up without further margin erosion, the stock gains fundamental support. If profits remain under pressure, the model offensive risks looking like an expensive defensive play.
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