The Chinese electric vehicle titan, BYD, is concluding the year with a complex narrative. Despite facing disappointing November sales figures and a significant vehicle recall, its Hong Kong-listed equity has demonstrated unexpected strength.
International Expansion Offsets Domestic Challenges
As conditions in its home market soften, BYD is aggressively pursuing growth overseas. In a bold move targeting a competitor’s stronghold, the company launched the Sealion 6 SUV in Japan on December 1. Priced from ¥3.982,000 (approximately $25,620), this launch represents a direct challenge to Toyota within the Japanese premium vehicle segment.
Simultaneously, the company is showcasing its diversification beyond automobiles. Its energy storage division successfully activated a 250-MWh battery system for mining giant Fortescue, highlighting a growing and promising business arm.
November Sales Dip and Recall Announcement
Operational data for November presented a mixed picture. BYD reported a year-on-year decline in vehicle sales of 5.3%, with production falling more sharply by 12.3%. However, the absolute volume remained substantial, with 480,186 units sold and robust exports accounting for 131,935 of those.
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Compounding these figures, China’s market regulator mandated a recall of 88,981 Qin PLUS DM-i plug-in hybrid sedans. The recall covers vehicles manufactured between January 2021 and September 2023, citing faulty battery packs that may cause voltage inconsistencies and disable the pure electric driving mode. This action brings the total number of BYD vehicles recalled in 2025 to over 210,000 units.
Financial Performance and Market Sentiment
The sales slowdown reflects broader financial pressures. The company’s third-quarter net profit had already contracted by 33% to RMB 7.82 billion.
Nevertheless, investor reaction in Hong Kong was surprisingly positive. BYD shares closed up by as much as 1.18% at HK$98.65. This resilience appears partly underpinned by analyst confidence. Research aggregator TipRanks maintains a “Buy” rating with a price target of HK$130.00, suggesting a potential upside of more than 30% from current levels.
The key challenges for BYD moving forward will be stabilizing sales performance in December and swiftly addressing the quality control issues highlighted by the recent recalls.
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