BYD’s Autopilot Liability Guarantee Arrives Amid a 55% Profit Collapse and Record Export Ambitions
02.06.2026 - 14:52:23 | boerse-global.de
The world’s largest electric-vehicle manufacturer is betting big on trust. BYD has announced it will cover all accident costs when its assisted-driving system is active — an industry-first move that carries no cap, no premium surcharge and no cost to the driver. The guarantee, unveiled on May 28 at the company’s vehicle-intelligence strategy event, covers urban “Navigate on Autopilot” and level-4 automated parking for users of the God’s Eye A and B systems running software version 5.0. The protection runs for one year and applies to both first and subsequent owners, though it is initially limited to the Chinese market.
The bold liability pledge comes at a time when BYD’s financials are under severe strain. Net profit attributable to shareholders plunged 55.38 percent in the first quarter of 2026 to 4.09 billion yuan, while revenue slipped 11.82 percent to 150.23 billion yuan. Domestic deliveries fell 24 percent in the same period — the 13th consecutive monthly decline on home turf. The company has responded by raising its 2026 export target to 1.5 million units, fueled by robust overseas growth that is increasingly offsetting the weakness at home.
BYD’s confidence in its technology is not without precedent. When the company launched a similar liability guarantee for intelligent parking last year, the take-up rate surged from 21 percent to 93 percent, while the accident rate remained near zero. The logic is carried forward into urban driving: if the manufacturer absorbs the risk, customers are far more likely to engage the systems. Some 3.15 million BYD vehicles equipped with driver-assistance features are now on the road, generating up to 200 million kilometers of driving data each day.
Under the new scheme, BYD will cover all direct economic losses — including repairs to the owner’s car, third-party property damage, personal injury and legal costs — provided the driver uses the system according to the rules. The guarantee is free, unlimited in compensation and will not affect future insurance premiums. It applies to both the God’s Eye A and B systems after an over-the-air update to software 5.0.
Should investors sell immediately? Or is it worth buying BYD?
Pricing remains a sharp competitive weapon. BYD’s LiDAR-based God’s Eye B system costs a one-time fee of 12,000 yuan (roughly $1,770). By comparison, Tesla’s equivalent offering in China comes in at 64,000 yuan (about $9,400) with no subscription option. That price gap, combined with the liability guarantee, puts significant pressure on rivals at a time when regulatory scrutiny over autonomous driving is intensifying in both the U.S. and China following a spate of high-profile incidents.
To underpin the technology, BYD also introduced the Xuanji A3 — what it calls China’s first domestically developed 4-nanometer chip designed for autonomous driving. The three-chip architecture delivers a combined computing power of more than 2,100 TOPS and is intended to support level 3 and level 4 functions alongside LiDAR, HDR cameras and long-wave infrared sensors. Chairman Wang Chuanfu has set the company’s long-term goal as “zero traffic accidents” through intelligent driving.
The technology offensive falls into a period of heavy corporate governance activity. BYD’s annual general meeting is scheduled for June 9 in Shenzhen. Shareholders will vote on the board and audit reports for 2025, the annual accounts and profit distribution, as well as the appointment of Ernst & Young Hua Ming as the sole external and internal-control auditor for 2026. A key resolution proposes authorizing a guarantee framework of up to 150 billion yuan for loans extended to subsidiaries and associates. Another special resolution would allow the issuance of up to 50 billion yuan in debt instruments, including commercial paper, medium-term notes, corporate bonds, asset-backed securities, offshore renminbi bonds and convertible bonds. Separately, the board is seeking approval to issue up to 20 percent of the existing H-share capital in new shares.
BYD at a turning point? This analysis reveals what investors need to know now.
BYD’s proposed final dividend for fiscal 2025 stands at 0.358 yuan per share. If approved on June 9, the payout date for H-share holders is set for August 9, 2026. The share register will be closed from June 4 to 9 for the AGM and again from June 15 to 18 to determine dividend entitlements. The ex-dividend date for H-shares is June 11.
The stock reflects the tension between the bullish technology story and the deteriorating earnings picture. On June 1, BYD’s H-shares closed at 91.15 Hong Kong dollars, near the bottom of their 52-week range of 88.50 to 143.60 Hong Kong dollars. All eyes are now on the June 9 AGM, where the liability guarantee, the capital-raising agenda and the dividend will test investor sentiment.
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