BYD is making headlines again with refreshed plug-in hybrid models that push electric-only range to 210 km, powered by a Blade Battery pack of 26.6 kWh. The updates target four high-volume PHEVs, featuring a combined driving range of 2,110 km. The revamped variants are Qin PLUS DM-i, Qin L DM-i, Seal 05 DM-i, and Seal 06 DM-i. The updated cars are due to hit the market, with the Qin PLUS DM-i and Qin L DM-i expected to begin selling today, and with entry prices anticipated between 100,000 and 120,000 yuan. Previously available versions could deliver up to 128 km in pure electric mode.
Regulatory changes in China play a key role in the launch timing. From 2026, plug-in hybrids must meet a minimum electric-range threshold of 100 km to qualify for tax exemptions, up from 43 km. BYD’s new models with a 210 km electric range sit comfortably above the bar, and the more affordable sedans are being positioned to attract buyers looking to benefit from tax incentives.
Global leadership and Europe shifting gears
BYD eclipsed Tesla in 2025 as the world’s largest maker of battery-electric vehicles. The company delivered 2.26 million BEVs, while Tesla moved 1.64 million. Overall, BYD sold 4.6 million vehicles in the year, up 7.73% from the prior year, although that pace marked the slowest growth in five years.
In Europe, BYD is gaining traction and stealing share from established players. In 2025, Germany registered 23,306 BYD passenger cars, roughly eight times the prior year’s figure, while Tesla Germany posted 19,390. In the United Kingdom, BYD tallied 51,422 new registrations in 2025, versus 45,513 for Tesla. BYD had already overtaken its U.S. rival by September.
Export momentum culminated in a record outbound total of 1,046,083 vehicles in 2025, up 150.7% from 2024. For 2026, BYD targets overseas sales between 1.5 million and 1.6 million units.
Domestic market remains a challenge
Despite international progress, the Chinese market proved difficult. BYD’s December sales declined 18.3% year over year, marking the fourth consecutive monthly drop and the steepest monthly decline in nearly two years.
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The broader new-energy vehicle market in China also weakened in December, with NEV sales down 37.7% year on year for the month, marking the eighth straight decline.
During investor events in December, BYD Chairman Wang Chuanfu acknowledged that the company’s technology lead over peers such as Geely and Leapmotor had narrowed, impacting domestic demand. BYD had already trimmed its 2025 sales target by 16% by mid-2025 as domestic momentum cooled.
The price environment contributed to the pressure. In May 2025, BYD reduced prices for more than 20 models, a move that sparked a broader industry-wide stock-price pullback. In response, Great Wall Motor’s chief executive described the situation as an “unhealthy state” for the world’s largest auto market. BYD subsequently slowed production and postponed planned capacity expansions. While the price cuts boosted volumes, they squeezed margins and increased domestic pressure.
Stock, valuations, and near-term outlook
In Shenzhen, BYD’s A-shares slipped 2.45% on the prior trading day to 97.54 yuan. Investors have been weighing concerns about narrowing margins against the company’s historic achievement of leading the global EV market.
In Hong Kong, BYD’s H-shares closed at 95.30 HKD, with later trading around 94.35 HKD. For 2025, Hong Kong-listed shares had risen about 7% year to date after a prior surge of up to 74% through late May, before the competitive environment intensified.
Valuation-wise, the H-shares trade at roughly a price-to-earnings ratio near 20 based on the last twelve months. For the A-shares, the average target price sits at 128.90 yuan, implying a potential upside of about 30% from the current level.
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