In news on Hong Kong stocks, BYD Co. Limited (HK:1211) is strengthening its presence in Japan with the launch of new EVs (electric vehicles). Further, the company is expanding its dealership network in the country. Currently present at 51 locations in Japan, including 22 dealerships, BYD is targeting 100 locations by the end of 2025.
The BYD share price is trading up by 0.88% on HKEX today at the time of writing. Year-to-date, the shares have declined by 6.78%.
Based in China, BYD Co. is among the leading manufacturers of electric vehicles and batteries in the world.
Breaking Boundaries: BYD’s Japanese Expansion
BYD faces a significant challenge in Japan due to perceived resistance to EVs and foreign brands. It sold less than 1,500 passenger cars in 2023. The company has also struggled to establish itself in this market, as brands like Toyota Motor (NYSE:TM) gained traction amid declining demand for EVs.
This week, BYD started the sale of the latest version of its Atto 3 electric SUV in Japan, following the launch of the model’s previous version in January 2023. In September 2023, the company launched its second car, the Dolphin, in the Japanese market. Looking ahead, the company intends to launch luxury sedans in Japan by the end of this year, with new models lined up in 2025 and 2026.
This expansion offers the company a chance to reduce its reliance on Mainland China and also fight the growing competition among Chinese carmakers.
Is BYD Stock a Good Buy?
According to TipRanks, 1211 stock has received a Strong Buy rating, backed by three Buys and one Hold recommendation. The BYD Co. share price target is HK$281.4, which implies an upside of 45.6% from the current trading level.
