BYD Backs Brussels-Peking Hybrid Deal as Board Gears Up for Q3 Numbers
Published on 10/18/2026 at 13:01 | Editorial boerse-global.de
BYD has thrown its weight behind the trade understanding reached between Brussels and Beijing, even though the carmaker stayed silent on volumes and caps when it made its position public. The endorsement carries more heft than it might first appear: together with Chery and SAIC, BYD accounts for more than 90 percent of all Chinese hybrid sales in the EU, according to Reuters.
The European side is using the arrangement to put a lid on the flow of vehicles. Per Reuters, the draft envisages capping imports of Chinese hybrids at 350,000 units a year. Implementation details are not yet settled, but China's commerce ministry sounded an upbeat note from Beijing, saying the framework it has found still leaves manufacturers room for continued export growth in the European market.
Two New Models, Two New Plants
On the product front, BYD keeps widening its European shop window. At the Paris motor show the group unveiled the Da Han, a further purely battery-electric model joining its existing line-up. The same event served as the stage for the seven-seat ATTO 8 SUV, fitted with a second-generation 115-kilowatt-hour battery and targeting a combined WLTP range of up to 653 kilometres; it is slated to reach the European market in the first quarter of 2027.
Local manufacturing is climbing the agenda alongside exports. Executive Vice President Stella Li, speaking a little over a week ago, stressed the company's long-term commitment to Europe — though at that point the group had no detailed information on the trade agreement. She also restated the goal of building two more European plants, with France under close scrutiny as the location for one of them.
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Tax Relief on Exports Set to Shrink
The push into Europe's large-SUV segment lands as the regulatory and fiscal ground shifts under Chinese manufacturers. China's finance ministry announced on 12 October that VAT rebates on exports of alternative-drive vehicles will be cut from 13 to 9 percent effective 1 April 2027, according to media reports — a move that threatens to squeeze export margins. Add to that the ongoing EU debate over possible ceilings on Chinese hybrid imports, which has weighed on the whole sector on the stock market of late.
Management, for its part, is drawing clear lines around its target markets. Li said at the Milken Institute Asia Summit that, given geopolitical uncertainty, the company has no plans at present to enter the United States with passenger cars. For now, the sales strategy stays focused on other overseas markets and the European continent.
Home Turf Delivers
At home, the group is posting operational gains in core segments despite the international headwinds. On Thursday it emerged that BYD installed 18.29 gigawatt-hours of EV batteries in China in September, holding second place behind CATL with a 21.09 percent market share — and narrowing the gap to the leader for a fourth consecutive month. In commercial vehicles, a milestone rolled off the line at the Huai'an plant on 10 October: the 150,000th unit, an electric Q3 tractor. BYD used the occasion to reaffirm plans to step up investment in heavy long-haul trucks.
Global sales volumes have also turned sturdier. September deliveries of vehicles with alternative drivetrains came to 463,561 units, up 17 percent year on year. For the first nine months, total sales add up to 3,131,576 vehicles, a shade below the prior-year level.
Analysts Trim, Stock Hovers Near Its Low
How all this feeds through to the bottom line will become clearer in the coming days: the board meets on 29 October to discuss and release unaudited figures for the third quarter and the first nine months. Investors kept their powder dry ahead of the date. The stock closed Friday at EUR 8.34, down 22 percent since the start of the year and only a thin cushion above its 52-week low of EUR 8.03.
Analysts have been adjusting their targets in recent weeks. Bernstein cut its price objective to USD 16.57 from USD 17.33 on 9 October while keeping its buy rating. Before that, CGS International lowered its target to USD 13.20 from USD 14.53 on 7 October, also leaving the stock at "Buy." All eyes now turn to 29 October.
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