BYD Company (BYDDY) (HK:1211) maintained its strong position in China’s new energy vehicle (NEV) market, achieving a new sales milestone in August. The company delivered 373,083 NEVs last month, up 30% year-over-year, and surpassed the previous record of 342,383 units set in July.
BYD’s sales growth was driven by its competitive pricing strategy, especially for the Seagull and Seal models. Furthermore, the company’s strategic expansion into international markets, including Europe, North America, and Asia, strengthened its global presence and boosted overall sales.
Plug-in Hybrid EVs Bolster Sales
Importantly, BYD’s August sales were primarily driven by strong demand for its passenger vehicles, particularly plug-in hybrid electric vehicles (PHEVs). Last month, the company sold 222,384 PHEVs, up 73% year-over-year and marking the sixth consecutive monthly record high since March. Further, battery-electric vehicle (BEV) sales surged 12% to 148,470 units.
Beyond passenger vehicles, BYD’s commercial vehicle sales also gained momentum. The company sold 2,289 commercial vehicles in August, a substantial increase from 300 units sold in the same month last year.
It is worth mentioning that BYD’s NEV sales in overseas markets also saw robust growth. The company sold 31,451 vehicles overseas in August, up 25.69% year-over-year.
Is BYDDY a Good Stock to Buy?
BYD has a strong position in the Chinese EV market backed by its wide range of vehicles, robust production capabilities, and effective marketing strategies. The company’s ability to consistently surpass sales records solidifies its position in the global EV industry, making it a strong competitor for Tesla (TSLA).
On TipRanks, BYD has a Moderate Buy rating based on a single Buy rating from J.P. Morgan (JPM) analyst Nick Lai. On July 10, he raised the price target to $56.42 from $30.78. This reflects a 7.5% downside potential from the current level.
