Securities firm JP Morgan predicts China’s BYD will succeed wildly by expanding electric vehicle launches and production investments beyond its domestic market and into foreign countries.
On the 10th, Bloomberg cited a JP Morgan report predicting BYD will achieve vehicle sales of up to 6 million units over the next two years.
The volume sold in countries other than China is predicted to be around 1.5 million units.
BYD relies primarily on the domestic Chinese market for its electric and hybrid vehicle sales.
Last year, BYD’s total vehicle sales were 3.02 million units, an increase of about 62% compared to 2022. Of these, export volumes were around 240,000 units, a single-digit percentage.
However, if JP Morgan’s forecast is accurate, the average annual export volume will increase to 750,000 units over the next two years.
JP Morgan noted that BYD has been strengthening its overseas market strategy and increasing localization efforts to circumvent price competition in the domestic Chinese market. They added that BYD is expected to be re-evaluated after seeing the outcomes of this strategy within the next one to two years.
BYD is steadily increasing the launch of electric vehicles in markets such as Southeast Asia, Europe, and Japan. Plans to expand into more countries, including Korea, are being implemented sequentially.
Investments are also being made to establish automobile production bases in Thailand, Indonesia, Brazil, and Hungary. The aim is to increase competitiveness in key markets through localization strategies.
JP Morgan predicted that the operation of BYD’s four overseas factories starting in 2026 will provide significant growth opportunities.
In this report, JP Morgan set the target prices for BYD listed on the Hong Kong and Shenzhen stock exchanges at 475 Hong Kong dollars (approximately $61) and 440 yuan (roughly $60.5), respectively. This is more than an 80% increase from the previously set target prices.
As of Bloomberg’s tally, BYD’s stock is trading at 241.4 Hong Kong dollars (approximately $31) on the Hong Kong stock exchange on the 10th. This means JP Morgan predicts a stock price increase of nearly 97%. Reported by Kim Yong Won.
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