Citi: BYD's leading technology strategy helps regain market share, cost increase expected to be limited

AASTOCKS
2026.03.11 02:49

The report from Citigroup indicates that BYD (01211.HK) is returning to its comfort zone of economies of scale, believing that the "disruptive" fast-charging technology and the launch of the second-generation blade battery will expand its technological gap with peers. Given BYD's leading capabilities in R&D commercialization, the cost increase is expected to be limited.

The firm states that industrial cost inflation and weak demand show that automakers are nearing the brink of survival, thus expecting BYD's alternative pricing strategy (technology-leading functional competition) will help it regain market share lost last year and pave the way for the firm's optimistic outlook on BYD's exports.

The firm reiterates its "highly confident outperform the market" rating for BYD, maintaining a target price of 130 yuan

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