BYD COMPANY

BYD Company Limited

BYD COMPANY-R

BYD Company

BYD executive forecasts a new round of growth in production and sales in the coming months

BYD COMPANY has lowered its sales target for this year by 16% to 4.6 million units due to intensified competition, expecting to face the slowest sales growth in nearly five years. The previous target was 5.5 million units, with multiple internal adjustments made recently. The latest target is below the forecasts of several institutions, with Deutsche Bank and Morningstar estimating sales at 4.7 million and 4.8 million units, respectively. The revised target represents only a 7% increase from last year, marking the slowest annual growth since 2020. BYD has slowed production by reducing factory shifts and postponing production line plans

BYD COMPANY lowers its sales target for this year by 16%

BYD is facing intensified competition in the new energy vehicle market and has lowered its annual sales target from 5.5 million units to 4.6 million units, expecting a growth of 10%. Li Yunfei stated that the sales target needs to be aligned with the market environment, emphasizing the importance of technological research and development. BYD hopes to increase the proportion of overseas market sales from 10% to 20% this year and holds an optimistic outlook on the Indian market, planning to provide more support to local partners

[Competitive Intensity] BYD hopes to increase its overseas market sales to 20% this year

The UBS report pointed out that BYD's management stated in the earnings conference call that profits were sluggish in the second quarter due to multiple challenges and competition. The company plans to strengthen cost and expense control in the second half of the year while maintaining confidence in overseas demand and profitability. Management attributed the poor performance in the second quarter to increased product upgrade costs and a slowdown in sales growth. In the future, they will continue to invest in research and development, focusing on launching the Sea Lion 06 and the Equation Leopard Titanium 7, and plan to open 1,000 retail stores in Europe by 2026

UBS: BYD plans to strengthen cost and expense control in the second half of the year and is confident in overseas profitability

Several senior executives of BYD have recently increased their holdings in the company's A shares, totaling 488,200 shares, amounting to 52.3278 million yuan. The executives who increased their holdings include Senior Vice President Luo Hongbin, among others. At the same time, BYD plans to re-enter the Indian market, with Managing Director Zhang Jie expected to visit India in the coming months to assess factory conditions and restart training programs. The company is also considering launching the Atto 2 electric SUV early next year to challenge local brands

BYD executives spent 52.33 million to increase their holdings in A-shares

BYD's sales in Europe doubled in August 2023, reaching 9,130 new vehicle registrations, and including countries like the UK, the total was 11,455 vehicles. This growth indicates an increasing acceptance of BYD's electric and hybrid vehicles among consumers. Meanwhile, SAIC Motor's sales also grew by 59%, reaching 12,822 vehicles. This shows that BYD and SAIC Motor are continuously expanding their market share in Europe

BYD executive forecasts a new round of growth in production and sales in the coming months

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