In key news on Hong Kong stocks, BYD Co. Limited (HK:1211) is mulling to open its second plant in Europe in 2025 as part of its ambitious plans for global expansion. Additionally, the company plans to launch an affordable EV for the European market, similar to its Seagull model in China. With the Seagull model expected to be priced at less than €20,000 in Europe, the company aims to address the rising demand for affordable EVs in this market. Overall, BYD seeks to establish itself as a leading EV manufacturer in Europe by 2030. BYD shares traded down by 1.06% today.
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Based in China, BYD Co. is among the leading automobile manufacturers of electric vehicles (EVs) in the world.
BYD’s Global Aspirations
After achieving record sales in China in 2023, BYD observed a slowdown at the start of 2024. In the first quarter of 2024, BYD sold 626,263 NEVs, marking a decline of 33.7% compared to the fourth quarter of 2023. This still marked a 13.4% increase on a year-over-year basis. BYD’s Q1 net profit increased by 10.6% to ¥4.57 billion, though this growth rate decelerated compared to the 18.6% growth observed in Q4 2023.
The Chinese EV market is facing challenges like overcapacity and aggressive price competition, along with broader macroeconomic factors. Given that the majority of BYD’s sales come from its home market, the company is under pressure to expedite its global expansion efforts. Consequently, BYD is intensifying its efforts to boost sales in Europe and secure a larger market share.
In December 2023, the company announced its plans to build a production base in Hungary. BYD already operates an EV bus manufacturing facility in Hungary. The company’s U.S.-based rival Tesla (NASDAQ:TSLA) manufactures electric buses at a plant in northwest Hungary, in the city of Komarom.
Is BYD Company a Good Stock to Buy?
According to TipRanks, 1211 stock has received a Strong Buy rating based on 12 recommendations, of which 10 are Buy. The BYD Co. share price target is HK$263.05, which implies an upside of 16.5% from the current trading level.
