Hong Kong-listed BYD Co. Limited (HK:1211) has joined forces with Singapore-based Grab to expand their EV (electric vehicle) fleet in Southeast Asia. Through this partnership, BYD will grant Grab drivers access to up to 50,000 electric vehicles across Southeast Asia. BYD shares gained 0.70% on Wednesday.
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In August 2024, BYD teamed up with U.S.-based Uber Technologies (UBER) to launch EVs worldwide. Under this collaboration, BYD introduced 100,000 new EVs to the Uber platform across key global markets.
Based in China, BYD Co. is a global manufacturer of EVs and batteries. Meanwhile, Grab is a super app in Southeast Asia, offering a variety of services such as delivery, transportation, financial services, and more. Grab operates as a subsidiary of NASDAQ-listed Grab Holdings Limited (GRAB).
Grab and BYD to Drive Southeast Asia’s EV Growth
The partnership between Grab and BYD covers Southeast Asian countries such as Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Meanwhile, BYD will offer a range of models such as the Denza D9, BYD Atto 3, BYD Seal, and BYD M6 under this partnership.
Grab and BYD believe that the high initial cost of EVs is a major obstacle to their adoption. Through their partnership, they aim to make it easier for Grab’s fleet and driver partners to access BYD EVs at affordable prices, offering special deals and extended battery warranties to encourage the shift to electric transportation. Additionally, Grab intends to position BYD’s premium EV brand, Denza, as the foundation of its GrabExec fleet, highlighting the Denza D9, a luxurious seven-seat electric MPV.
BYD vehicles are well-suited for ridesharing, boasting low maintenance and repair costs, a wide variety of models, and features that make them ideal for such partnerships.
Is BYD a Good Stock to Buy Now?
Recently, BYD reached a milestone with its 10-millionth new energy vehicle (NEV), showcasing its rapid production growth. Moving ahead, analysts remain strongly bullish on the stock driven by its sales performance and market expansion. In 2024, BYD delivered over 4.27 million vehicles, marking a 41.26% increase year-over-year.
According to TipRanks, 1211 stock has received a Strong Buy rating, backed by seven Buy and one Hold recommendations from analysts. The BYD Co. share price target is HK$357.07, which implies an upside of 38% from the current trading level.
