Daiwa: BYD COMPANY (01211) overseas sales to reach 1.8 million and 2.5 million units this year and next year

Daiwa released a report stating that BYD COMPANY (01211) management updated its 2026 sales and gross margin outlook, as well as progress on fast charging. According to guidance, overseas sales will reach 1.8 million and 2.5 million units in 2026 and 2027, respectively. Looking ahead to the second half of 2026, management is confident in regaining market share with the supply ramp-up of the second-generation blade battery. Daiwa gives BYD Company Limited a "Buy" rating. On overseas profitability, management guided that average net profit per vehicle overseas is about RMB 20,000, and is confident of meeting this target in 2026. To cope with tariffs (Brazil imposes 35% on Chinese Shanxi Guoxin Energy Corporation vehicles; the EU's total tariff rate on BYD Company Limited pure electric vehicles totals 27.4%), management said the Brazil plant has already started production, and the Hungary plant will start production before the end of 2026. Regarding rising costs of other raw materials and foreign exchange, management said it will not raise prices of existing models, but will reposition the overall product portfolio through more features, updated models, new model launches, and repricing. The report noted that on fast-charging models, in August the Titan 7 EV, Song Ultra EV, Datang, and the new Yuan Plus each sold more than 10,000 units, with Yuan Plus sales exceeding 20,000 units. On profitability, management guided that the average selling price of fast-charging models will increase by about RMB 5,000 per vehicle, with relatively high gross margins. Management said that in August about one-third of domestically sold models were equipped with fast-charging functionality, and expects penetration to rise further as production capacity for the second-generation blade battery ramps up.