Hong Kong-listed BYD Co. Limited (HK:1211) has reportedly set up a new R&D unit to strengthen its investments in AI amid greater emphasis on vehicle intelligence. According to the Chinese media publication LatePost, the company has established an advanced technology research and development (R&D) center, featuring divisions such as an AI lab, an AI supercomputing department, and a big data platform division. BYD shares gained 2.3% as of writing.
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Based in China, BYD Co. is among the leading global manufacturers of EVs (electric vehicles) and power batteries.
BYD Expands AI Focus for Smarter Vehicles
According to the news report, the R&D center will focus on developing technologies like AI algorithms, AI infrastructure, and large models. Its main goal is to provide the computing power and technical support needed for smart driving, smart cockpit features, and dual-mode systems in vehicles.
Additionally, the resources from the center will be shared with BYD’s vehicle intelligence teams, as well as other areas of the business, such as insurance and customer service. The report further stated that the center was established at the end of September and currently employs about 500 people. It plans to expand to more than 1,000 people in the future.
BYD’s Bold AI Vision for Future Innovation
In 2024, BYD has greatly boosted its investment in software and algorithms. In January, the company introduced the Xuanji Architecture as the core of its vehicle intelligence, which includes a central brain, cloud-based AI, vehicle-based AI, and more. BYD also announced that it would invest ¥100 billion ($13.7 billion) in intelligence technologies in the future to take the lead in NEV (new energy vehicle) development.
Notably, BYD delivered 506,804 NEVs in November, representing a 67.87% year-over-year increase. It also surpassed the mark of 500,000 for the second time. This exceptional growth allowed BYD to exceed its 2024 target of delivering 3.6 million vehicles by November.
Moving ahead, BYD will leverage smart driving features to drive its sales growth in 2025, as the impact of its price advantage starts to decline. As reported by media group 36kr, the company plans to introduce smart driving feature variants across all its models next year.
Is BYD a Good Stock to Buy Now?
Analysts maintain a highly bullish stance on BYD stock as reflected in its Strong Buy rating. According to TipRanks, 1211 stock has received eight Buy and one Hold recommendations. The BYD Co. share price target is HK$353.97, which implies an upside of 35% from the current trading level.
