On Sunday, Chinese electric vehicle maker BYD shared a sixth straight month of October sales growth, driven by international markets that compensated for soft domestic demand and intense local price competition.
The reports showed that vehicle sales grew 11% from a year ago compared to 490,168 units last month cooling from a 17% gain in September while international deliveries climbed 102.8% annually to 170, 194 units.
It has been observed that BYD’s third-quarter profit growth slowed to 28% annually falling short of forecasts as global market saturation and sluggish domestic demand forced an industry-wide pivot toward exports.
BYD being a prominent exporter of hybrid vehicles to the EU could experience new restrictions under the China-EU deal which aims at reining in hybrid imports in Europe.
Furthermore, China’s local auto market is expected to bounce back slightly in 2017 after a worse than expected slump this year.
Morgan Stanley reaffirmed its overweight rating on BYD’s H-shares on Friday at a target pace of HK$114. The house pointed to its foreign profit margins and the company’s ability to translate operations into earnings; moreover recognizing foreign exchange pressures surpassing RMB 2 billion in the third quarter of 2026.
