BYD's Export Boom and Covestro Pact Offset a Domestic Sales Dip
Published on 07/17/2026 at 13:06 | Redaktion boerse-global.de
For a company that sold nearly 404,000 new-energy vehicles in June alone, BYD's domestic performance was a glaring weak spot. Worldwide deliveries rose a modest 5.46 percent from a year earlier, but that headline masked a sharp divergence: overseas sales surged 95 percent to 174,900 units, while the home market saw a 21.94 percent drop to 228,600 vehicles. The Chinese automaker is scrambling to rebalance that equation through a mix of material-science alliances, political hires, and an accelerated model offensive.
A freshly inked memorandum of understanding with German chemicals heavyweight Covestro marks the most notable departure from BYD's usual supplier playbook. The two companies will collaborate on new materials for electric vehicles, battery systems, energy storage, and public transport — moving beyond a straightforward buyer-seller relationship into joint innovation programmes and possible strategic investments. Covestro brings expertise in polycarbonate and polyurethane, particularly in lighting, interior and exterior trim, and connected-mobility electronics. Its CQ portfolio, which incorporates at least 25 percent alternative raw materials, will be central to the pair's push for low-carbon, circular solutions. For BYD, the deal is an attempt to tighten its grip on the weight, durability, and thermal performance of key components at a time when competition with Tesla, Volkswagen, and others leaves little margin for error.
On the political front, BYD has pulled off a rare personnel coup. Péter Szijjártó, Hungary's former foreign minister, resigned his parliamentary mandate on July 15 to take charge of external relations and new business development at the carmaker. During twelve years in office, Szijjártó was instrumental in luring BYD to Hungary — the company now builds a 300,000-vehicle-a-year factory in Szeged and maintains its European headquarters in Budapest. His move underscores how deeply the company is embedding itself in the continent's manufacturing and regulatory landscape.
Should investors sell immediately? Or is it worth buying BYD?
Not every European venture is running smoothly, however. Turkey has threatened to claw back state investment incentives if BYD formally abandons its $1 billion factory project in Manisa, which was put on ice in June after showing no progress since a 2024 agreement. Industry Minister Kac?r said unpaid 40 percent customs duties on imported vehicles, plus late-payment interest, would be collected and the allocated industrial site reclaimed. Elsewhere in Europe, BYD is holding talks with multiple carmakers to buy existing plants outright — including in Italy — favouring full ownership over joint ventures as it races to build local production capacity ahead of potential tariff barriers.
The product pipeline is also being refreshed at pace. In June, BYD launched the Da Tang EV, a flagship D-segment SUV priced from 239,900 yuan. It uses the second-generation Blade battery and claims a range of 950 kilometres — a global best for its class, according to the company. Advance orders have already exceeded 150,000 units. On July 17, official images emerged of the 8er Tang, a mid-sized five-seater SUV stretching 5,045 millimetres in length with a 2,950-millimetre wheelbase. A 300-kilowatt synchronous motor gives it a top speed of 250 km/h, and its lithium-iron-phosphate Blade battery is expected to deliver more than 800 kilometres of range. Market launch is slated for the second half of 2026. Meanwhile, BYD's Denza brand delivered 20,352 vehicles in June, up 28.95 percent year-on-year, and unveiled the Z9S sedan with two powertrain options rated at 320 and 370 kilowatts to take on the Xiaomi SU7.
The export momentum is striking. In the first four months of 2026, BYD shipped 456,263 new-energy vehicles abroad, up sharply from 285,170 in the same period of 2025. That aligns with a broader Chinese export boom: June saw a record 1.037 million vehicles leave the country, a 75.1 percent year-on-year leap, with new-energy vehicles accounting for 523,000 of those — up 160 percent. Over the first half, BYD's overseas sales totalled 789,400 units, a 70.65 percent increase, even as total group sales fell 15.72 percent to 1.8085 million vehicles due to the domestic slide.
Investors have yet to reward the story with sustained conviction. As of the latest session, BYD shares traded at €9.82 in Frankfurt, down 1.76 percent on the day and 33.62 percent below the 52-week high of €14.80 reached in July 2025. The stock has clawed back about 24.5 percent from its trough of €8.03 on June 30, but remains 26.85 percent lower than a year ago and 8.72 percent in the red year-to-date. The Covestro partnership gives traders a fresh narrative alongside monthly delivery data and European expansion headlines, but whether the material-science tie-up translates into genuine product advantages — and whether the export surge can compensate for persistent domestic weakness — will take several quarters to answer.
Ad
BYD Stock: New Analysis - 17 July
Fresh BYD information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
