BYD Shares Soar Most In 13 Months As Chinese EV Push Into Americas Accelerates

Shares of Chinese EV maker BYD surged the most in 13 months after a report that its factory in Bahia, Brazil, a former Ford Motor plant, secured export orders for about 100,000 vehicles from Argentina and Mexico. This development suggests BYD’s strategy to localize production in South America is still in its early stages and set to flood the continent with Chinese EVs.  

Bloomberg quoted Macquarie Capital analyst Eugene Hsiao, who said the local Chinese media report about BYD’s Brazil factory receiving large orders from Argentina and Mexico suggests that “this is positive for the broader BYD thesis, which is that overseas sales will become the core growth and profit driver over time.”

Brazil is BYD’s largest market outside China. The factory in Bahia is critical to the Chinese company’s overseas expansion plans in the Americas. The plant has a capacity to make 150,000 EVs per year.

In BYD’s home market of China, overall sales for the first two months of the year slumped 36% to 400,241 units. Competition in China has intensified as rivalry among domestic brands grows fiercer. However, exports have gained solid traction, with the company now planning to sell 1.3 million cars abroad.

“A higher gas price would potentially drive demand in the European market, which would benefit Chinese automakers that export to that market such as BYD,” Morningstar analyst Vincent Sun said, adding, “For Chinese market, gas bill is not as big a driver to EV demand as in overseas market.”

BYD shares in Hong Kong surged 8% on Monday, marking the largest gain in 13 months, as news of overseas expansion lifted investor sentiment.

The stock was a top performer on the Hang Seng Tech Index, with trading volume doubling to 35.7 million shares. Peers including Nio and Xiaomi climbed more than 5%.

Top BYD headlines (courtsey of Bloomberg):

• The Brazil plant has annual capacity of 150,000 vehicles and will increase production to 600,000 vehicles in phases

• BYD will launch the premium Denza Z9GT electric vehicle in Europe on April 8, offering up to 800 kilometers range

• The new vehicle can charge from 10% to 70% in about five minutes using BYD’s latest fast-charging system

• BYD unveiled its second-generation Blade Battery on March 9, promising to charge EVs from 10% to 97% in under nine minutes

• BYD is exploring entry into Formula 1 and endurance racing to boost global brand appeal

• BYD is actively considering building a manufacturing plant in Canada and keeping options open to acquire a global automaker

For readers heading to Mexico for spring break, one of the first things you may notice after stepping outside the airport terminal is how many BYD vehicles are already on the road. The flood of Chinese EVs is shifting into hyperdrive, and in the Americas, the invasion is already underway.