Chinese electric vehicle (EV) giant BYD is accelerating its international growth strategy through a series of new partnerships and manufacturing initiatives. This operational push is accompanied by ambitious sales targets for markets outside China, set for 2026. A central challenge for management will be maintaining the execution pace that fueled its rapid expansion in recent years.
Elevated Sales Targets for International Markets
During a recent media event in Shanghai, BYD’s leadership outlined a significant goal for its overseas business. The company is targeting 1.3 million vehicle sales outside of China in 2026. This figure represents a planned increase of approximately 25% over the 1.04 million deliveries projected for international markets in 2025.
This broader target is being broken down at a regional level. For instance, BYD Korea announced on Tuesday its ambition to sell more than 10,000 vehicles in 2026, a substantial rise from the roughly 6,000 units sold in the region during 2025. To support this growth, the company plans to expand its model lineup in Korea. The expanded portfolio will include a rear-wheel-drive variant of the Seal sedan and the compact Dolphin, supplementing the existing DM-i (Dual Mode intelligent) hybrid vehicles. This move is designed to broaden BYD’s appeal across both volume and mid-price segments.
Forging a Strategic Alliance with ExxonMobil
In a key development on Monday, BYD Auto Industry, a subsidiary of BYD, entered into a long-term strategic cooperation agreement with ExxonMobil. The collaboration is centered on the joint development of technologies for new energy hybrid vehicles and advanced materials.
The partnership aims to leverage ExxonMobil’s expertise in fluids and materials, integrating it into BYD’s plug-in hybrid electric vehicles (PHEVs). Primary objectives include enhancing the performance and efficiency of these PHEV models and strengthening the hybrid segment as a complementary growth driver alongside BYD’s pure electric vehicles. This initiative underscores BYD’s focus on a technology area that continues to play a vital role in the global transition of vehicle powertrains.
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Strengthening the ASEAN Manufacturing Footprint
Concurrently, BYD is deepening its investment in Southeast Asian production capacity. Vietnamese firm Kim Long Motor reported a partnership with BYD on Tuesday to construct a $130 million EV battery plant in Vietnam.
This project has several strategic aims: expanding the local manufacturing base within the ASEAN region, securing battery supply for Vietnam’s growing EV market, and potentially reducing logistics costs and transport distances by shortening supply chains. The investment is consistent with BYD’s broader strategy to regionalize the manufacturing of core components.
Capacity Expansion and the European Hub
Following a strong performance in 2025, with total sales of around 4.6 million new energy vehicles, investor attention is now focused on how these expansion plans will translate into financial results. The consistent execution of its “export-first” strategy remains a key priority for the current fiscal year.
A crucial element of this strategy is the new manufacturing facility under construction in Turkey. Progress continues at the site, with production currently scheduled to commence by the end of 2026. This factory is intended to serve as a hub for the European market, potentially helping to mitigate regional tariffs and logistical challenges.
The Integrated 2026 Plan
The interplay of these projects—the ExxonMobil partnership, the Vietnam battery plant, elevated international sales targets, and the planned Turkish factory—sketches a clear operational roadmap for 2026. The decisive factor will be whether BYD can successfully achieve its target of 1.3 million overseas vehicle sales utilizing this new capacity structure and its expanded model range.
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