In interesting news on Hong Kong-listed stocks, Chinese automaker BYD Co. Limited (HK:1211) is accelerating the pace of its international expansion with the construction of its $680 million manufacturing plant in Brazil. A Reuters report noted that the electric vehicle (EV) giant is aiming to start production at the plant by the end of this year or early 2025.
The manufacturing complex in Brazil is expected to have an annual manufacturing capacity of 150,000 units. On launch, the complex will first start building select models including the Dolphin hatchback, Dolphin Mini, Song Plus SUV, and Yuan Plus crossover.
BYD Boosts Export Initiatives
In the meantime, BYD has launched a new third EV model in India. Seal, its luxurious battery-powered sedan, is priced at a 4.1 million rupees tag for the base model. BYD already sells the Atto 3 SUV and the E6 multipurpose vehicle in India, both priced at more than 3 million rupees.
BYD is already the leader in EV sales in China. It took over American rival Tesla (NASDAQ:TSLA) as the market leader in the fourth quarter of 2023. Last year, BYD sold 3.02 million EVs and plug-in hybrid vehicles, with most of them sold in the home market and only 8% exported. Even so, the 242,765 units sold abroad represented a 334% jump over 2022’s export sales.
Now, BYD is focussing on making a mark in the overseas EV markets as sales in China are seeing sluggish growth. BYD is aggressively strategizing to launch more EVs in international markets while also investing in manufacturing hubs outside of China. Notably, China surpassed Japan as the world’s largest auto exporter. Interestingly, BYD is strengthening its international presence with new EVs and dealership expansion.
The EV landscape in China is under intense pressure due to the ongoing price war. BYD has also slashed the prices of some of its EVs in response. As per research by Fitch Ratings, EV sales in China grew 37% in 2023, with the growth rate projected to slow down to 20% in 2024.
Is it Safe to Buy BYD Stock?
On TipRanks, 1211 stock commands a Strong Buy consensus rating based on four unanimous Buys. The BYD Co. Limited share price target of HK$289.98 implies 51.7% upside potential from current levels.
