BYD's Two-Front Challenge: Record Exports and a $20B Credit Cushion vs. Domestic Slump and SUV Production Bottlenecks

BYD shareholders gather in Shenzhen on Tuesday for an annual general meeting that will test their appetite for a massive financial backstop – a 150 billion renminbi (about $20.7 billion) guarantee framework designed to support the electric-vehicle maker’s aggressive global push. The vote comes as the company simultaneously wrestles with a delayed domestic SUV launch that has exposed production constraints, and a stock price hovering dangerously close to its 52-week low.

The agenda for the AGM is dominated by the request to unlock a credit guarantee ceiling of up to 150 billion RMB, which the management says is needed to secure loans for both domestic and international subsidiaries. The board has stressed that none of the guarantees will benefit management or unrelated third parties. If approved, the measure will give BYD the financial firepower to fund its ambitious export target of 1.5 million vehicles this year – a goal that looks increasingly vital given the deepening trouble in its home market.

Shortly after the shareholder meeting, investors will turn their attention to the dividend deadline. BYD is paying out 0.358 RMB per share for the 2025 fiscal year, with the ex-dividend date set for June 11. Those holding shares by that date will receive the payout at the end of July.

The operational backdrop to the AGM is a study in contrasts. May sales reached approximately 383,000 electric and hybrid vehicles, a modest improvement that snapped an eight-month streak of sequential declines. But the headline figure masks a sharp divergence: exports surged nearly 81 percent year-on-year to a record 160,000 units, while domestic deliveries slumped 24 percent to about 223,000 – the 13th consecutive monthly drop on home soil.

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That domestic weakness has been fueled by an intensifying price war in China, where rivals such as Geely are luring mass-market buyers with aggressive discounts. BYD’s technological upgrades have failed to sway price-sensitive consumers outside the major cities, and the financial toll is evident. Net profit for 2025 fell 19 percent to 32.6 billion RMB, and profit margins have narrowed noticeably.

In response to the stagnation at home, BYD is pressing ahead with its international expansion and investing in proprietary technology. The company recently unveiled a self-developed 4-nanometer chip designed to handle Level 3 and Level 4 autonomous driving, a move aimed at reducing reliance on hardware price advantages. Yet the market has largely shrugged off these strategic steps: the stock trades at around EUR 9.83, less than 3 percent above its 52-week low and roughly 11 percent below its 50-day moving average. Over the past 12 months, the shares have lost nearly 78 percent of their value.

The other major event this week is the delayed launch of the Great Tang, BYD’s flagship SUV under the Dynasty series. Originally scheduled for May, the vehicle finally reaches showrooms on June 8, according to dealer sources, though some outlets reported they had not yet received display models by the last minute. The delay was caused by production capacity constraints: BYD acknowledged that demand for models equipped with its Flash Charge platform, which uses a second-generation Blade battery, has outstripped supply. The company has amassed over 100,000 pre-orders in less than two weeks, but that backlog is a double-edged sword – it creates a positive demand signal only if BYD can ramp up deliveries without cannibalizing output of other models that share the same battery and charging architecture.

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The Great Tang is clearly aimed at the premium segment, with a pre-sale price range of 250,000 to 320,000 yuan (roughly €32,000 to €41,000). It boasts a 1000-volt high-voltage architecture, rear-wheel steering, smart two-chamber air suspension, a claimed EV range of up to 950 kilometers on the Chinese test cycle, and a 0-100 km/h sprint of 3.9 seconds. The SUV competes in a category where range, fast-charging capability and three-row seating are decisive factors, and BYD sees it as a proof point that the brand can compete in China’s premium market, not just in the volume segment.

For BYD, the coming weeks will be crucial. A smooth ramp-up of Great Tang deliveries would bolster the narrative that the company can master its Flash Charge platform in a higher-margin segment. Any stumbles, however, will refocus attention on the production bottlenecks that forced the delay in the first place. Meanwhile, the AGM vote on the 150 billion RMB guarantee will determine whether BYD has the financial flexibility to sustain its export offensive while navigating a still-shrinking domestic market.

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