BYD Aims to Sell 1.6 Million Cars Outside China

BYD, the Chinese electric vehicle manufacturer, plans to sell up to 1.6 million units in international markets by 2026, according to a report by Citi. This figure marks a substantial increase from the current target of between 900,000 and one million electric cars expected for export in 2025, highlighting the company's growing commitment to global expansion.

According to the American bank, BYD's foreign sales growth will be driven by the launch of new models and a more balanced regional strategy. The company aims to distribute its international sales evenly across Europe, North America, and several Southeast Asian countries (ASEAN), with each region representing approximately one-third of the total.

The Citi report is based on a recent meeting with BYD's management, where the group's leaders expressed confidence in maintaining a "high double-digit" growth rate from 2025 onwards. This international push comes at a time when the manufacturer faces increasingly fierce competition in the Chinese domestic market, particularly in the affordable vehicle segments.

The company has reduced its global sales target for 2025 by 16%, down to 4.6 million vehicles, due to cooling demand in China in recent months, triggered by a price war among manufacturers.

Nonetheless, the brand's weight in foreign markets is rapidly increasing: around 20% of BYD's total sales in 2025 will occur outside the country, double that of the previous year.

This strategic shift underscores the importance of geographical diversification for the Shenzhen-based group, which seeks to reduce its reliance on the world's largest automotive market. Europe and Latin America are emerging as key pillars of its expansion, alongside new operations in Southeast Asia.

BYD has reinforced this strategy by constructing international factories dedicated to local assembly. The company already has plants in Hungary and Brazil and plans to open a third facility in Europe, with Spain as one of the main candidates.

These investments add to the network of at least eight megafactories that BYD has developed within China over the past five years, allowing it to expand both its vehicle production capacity and its battery production, a key component in its value chain.

The Citi report also points to a change in the company's investment pace. BYD executives anticipate a reduction in capital expenditure in the fourth quarter of 2025 compared to the previous quarter, with a more pronounced decline in 2026. The company believes its current vehicle and battery manufacturing capacity will be sufficient to meet the expected demand.

Despite this consolidation, BYD continues to allocate significant resources to its expansion outside China and technological development, areas considered essential to maintaining its leadership against emerging competitors. Among its national rivals are Geely and Leapmotor, both with a growing presence in the low-cost electric car segment and who have also begun operations in Europe.

The competitive challenge is also reflected in the group's most recent financial results. In the last quarter, BYD recorded its largest profit drop in over four years, affected by declining sales in China and price pressures in the domestic market.

Nevertheless, the company is confident that international diversification will allow it to offset this slowdown. Its expansion into developed markets such as Europe and North America, along with the growing acceptance of electric vehicles in emerging countries, forms the basis of its medium-term projection.

BYD has not yet communicated its global sales targets for 2026, although Citi anticipates that the group will maintain a solid growth path, driven by its wide range of electric and hybrid models and an increasingly globalized production network.

The company, which from the outset had been backed by American investor Warren Buffett through Berkshire Hathaway, has established itself as one of the leading players in the global electric sector and a direct competitor to Tesla.