From Turkey to Spain: BYD Rethinks European Manufacturing as Export Surge Fuels Share Rally
Published on 07/03/2026 at 16:07 | Redaktion boerse-global.de
BYD shares staged a sharp recovery this week, powered by a record-breaking export month and a strategic pivot away from its stalled Turkish factory project toward a new European production site in Spain or France. The twin catalysts lifted the stock more than 13% over seven trading sessions from a 52-week low of 8.03 euros hit on June 30.
On Friday, Hong Kong-listed shares jumped 4.39% to 9.35 euros, building on a 9% advance the previous session. The rally marks the strongest run of the year for the Chinese electric-vehicle giant, though the stock still trades 37% below its July 2025 peak of 14.80 euros.
Exports Rescue Sagging Volumes
Deliveries for June reached 403,472 battery-electric and plug-in hybrid vehicles, up 5.46% year-on-year and the second consecutive month of growth. The real driver, however, was overseas sales. Export volumes hit a record 175,349 units — a 94.73% surge over last year — meaning international markets now account for more than 43% of monthly sales.
For the second quarter, total deliveries came in at 1,108,048 vehicles, a 58.19% jump from the first quarter, but still 3.24% below the same period last year. The first-half tally stood at 1,808,511 units, down 15.72% from a year earlier.
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The export performance reversed some of the damage inflicted by China’s brutal price war. Domestic sales in June fell to 228,123 vehicles, a 22.02% decline from last year, although they edged up 2.39% month-on-month.
Reclaiming the EV Crown
Among pure battery-electric vehicles, BYD appears set to retake the global lead from Tesla. The Shenzhen-based manufacturer delivered 557,090 BEVs in the second quarter, enough to outpace Tesla’s estimated 396,500 units by over 160,000 vehicles — a decisive margin even though BYD’s BEV count itself slipped year-on-year.
A New Chapter for Europe
The share price gains coincided with a major shift in BYD’s European strategy. Speaking at the Reuters Automotive Conference in Frankfurt, special adviser Alfredo Altavilla revealed that the company has deployed two dedicated teams to scout brownfield sites — existing auto plants — in Spain and France. A decision is expected within weeks.
The move effectively shelves BYD’s $1 billion factory plan in Manisa, Turkey. Vice President Stella Li confirmed the project is on hold, with capital redirected into the European Union where the company can secure more immediate market access. The shift is driven by looming “Made in Europe” regulations and import tariffs of 10-45% on Chinese-made EVs.
The new facility will complement, not replace, the primary European plant under construction in Szeged, Hungary. Vehicle assembly there is slated to begin in the fourth quarter of 2026. The urgency for a second site is underscored by BYD’s European registration data: new vehicle registrations in the region surged 158% year-on-year in May.
Global Footprint Expands
Beyond Europe, BYD is deepening its local manufacturing footprint. In Brazil, its Camaçari industrial complex will transition from assembly of imported parts to full vehicle production — including welding, painting, and stamping — by the end of July 2026, reducing reliance on Chinese imports for the South American market.
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In Australia, BYD delivered 18,881 vehicles in June, a monthly record that brought it within 243 units of market leader Toyota.
Technical Picture Still Cautious
Despite the recent bounce, the stock remains deep in bear territory. It sits 6.10% below its 50-day moving average of 9.96 euros and 13.09% below the 200-day average of 10.76 euros. On a year-to-date basis, BYD has lost 14.65%, and over 12 months the decline is nearly 30%.
The 30-day annualized volatility stands at 36.59%, while the relative strength index at 52.8 signals neutral territory. Whether the rally sustains depends on whether BYD can continue to offset China’s pricing pressure with international expansion. The next batch of delivery and earnings data for the second half of 2026 will offer the clearest test.
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