BYD is launching a dual-pronged strategy to stimulate growth, introducing a new commercial vehicle sub-brand and bringing advanced driver-assistance systems to its most affordable models. These moves come as the Chinese electric vehicle giant navigates a cooling domestic market and intense competitive pressures.
The company’s Hong Kong-listed shares saw an intraday gain of approximately 2.6% to 97.80 HKD following the announcement. This uptick was prompted by filings from China’s Ministry of Industry and Information Technology (MIIT) that detailed the new “Linghui” brand and expanded assisted-driving capabilities.
Broadening Technology Access: LiDAR for Entry-Level Models
In a significant shift, BYD plans to offer LiDAR technology as an optional feature on its compact Seagull and Dolphin models. This move democratizes a sensor suite previously reserved for the company’s and its Denza sister brand’s premium vehicles.
The system, known as DiPilot 300 (marketed as “God’s Eye B” in China), includes several key components:
* A Robosense LiDAR unit with a 350-meter range
* An Nvidia Drive Orin chip providing 254 TOPS of computing power
* Navigate on Autopilot (NOA) functionality for both city and highway driving
Notably, the Seagull, which starts at around 79,800 yuan (approximately $11,400) in China, could become one of the world’s most affordable vehicles equipped with LiDAR-assisted driving technology. This signals a clear strategic intent to roll out advanced features across the product lineup rather than keeping them exclusive to high-end segments.
Launching a Dedicated Fleet and Ride-Hailing Brand
Simultaneously, BYD is establishing a clear separation between its consumer and commercial businesses with the new Linghui sub-brand. The MIIT filings revealed four models under this banner: the e5, e7, e9, and M9. These are rebadged versions of existing BYD vehicles:
* The Qin Plus becomes the Linghui e5
* The flagship Han sedan is rebranded as the Linghui e9
* The Xia DM-i van transforms into the M9
Industry observers interpret this as an effort to distinctly segment the fleet and ride-hailing customer base from private buyers. This strategy aligns with BYD’s recent success in premium segments; for instance, its off-road brand Fangchengbao saw deliveries surge by over 300% in 2025 to roughly 234,600 units.
While BYD has not officially commented on the Linghui brand, historical patterns suggest models typically launch in China within weeks of appearing in MIIT documentation.
Should investors sell immediately? Or is it worth buying BYD?
Navigating a Challenging Domestic Landscape
These product initiatives unfold against a backdrop of market strain. S&P Global warned that the Chinese auto market is likely to contract again in 2026, despite ongoing government subsidies, indicating persistently fierce competition.
BYD itself is experiencing this slowdown. The company’s deliveries for December 2025 came in at 414,784 vehicles, down from 474,921 in November. However, for the full year 2025, it delivered a total of 4.54 million vehicles, representing year-on-year growth of 6.94%. This performance allowed BYD to surpass Tesla as the world’s largest EV manufacturer and meet its revised annual target of 4.6 million units—a goal that had been lowered by 16% due to weaker domestic demand.
In a related update, BYD announced refreshed versions of four plug-in hybrid models (Qin PLUS DM-i, Qin L DM-i, Seal 05 DM-i, Seal 06 DM-i) on January 7. Set to launch this month, these updated variants will offer electric ranges exceeding 210 km, allowing them to qualify for updated purchase tax incentives that now require a minimum of 100 km of electric range, up from the previous 43 km threshold.
Stock Performance and the International Pivot
Despite the recent single-day recovery, BYD’s stock remains under pressure. Over the past five trading sessions, it declined by 4.15%, closing at 94.65 HKD yesterday. The current share price sits approximately 40% below its 52-week high of 158.87 HKD, reflecting widespread investor concern over market saturation in China and relentless price competition in the EV sector.
Current market expectations include:
* A consensus “Buy” rating from 28 analysts
* Expected 2026 EPS of 5.31 CNY
* Forecasted profit growth for 2026 of nearly 35% year-over-year
The next significant milestone will be the release of Q4 2025 financial results, expected on March 30, 2026. This report will provide clearer insight into how effectively BYD is balancing volume and profitability in the current climate.
A critical component of the company’s forward strategy is international expansion. According to Citigroup, BYD aims to sell between 1.5 and 1.6 million vehicles overseas in 2026—a substantial increase from current levels. Success in this ambitious overseas push could help offset challenges in the home market and support medium-term growth expectations.
Ad
BYD Stock: Buy or Sell?! New BYD Analysis from January 10 delivers the answer:
The latest BYD figures speak for themselves: Urgent action needed for BYD investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from January 10.
BYD: Buy or sell? Read more here...
