Hong Kong-listed BYD Co. Limited (HK:1211) is reportedly eyeing entering the Canadian auto market, despite the country contemplating tariffs on vehicles imported from China. According to Reuters, the company’s subsidiary, BYD Canada, held meetings with Canadian government officials on setting up a new business. However, there is no official statement from the company. BYD shares gained 1.42% in today’s trading session.
Based in China, BYD Co. is one of the leading manufacturers of electric vehicles (EVs) and batteries in the world.
BYD Sets Sights on North America
BYD intends to expand its presence in the North American market. In May 2024, BYD launched its first pickup truck, BYD SHARK, in Mexico, making its official debut outside China. Further, in June 2023, the company delivered the first 100 units of its Yuan Plus SUV in Mexico, marking a significant milestone.
However, last month, Canada announced that it was evaluating the possibility of imposing tariffs on EVs imported from China. This action is a part of Canada’s strategy to align with the U.S. and the European Union in tackling a heavily subsidized Chinese industry.
According to the Reuters report, BYD is exploring the potential impact of the imposition of these tariffs on its EVs in Canada.
BYD’s Global Expansion
Earlier this month, BYD launched its first EV factory in Thailand to capitalize on the growing demand in Southeast Asia.
BYD is actively expanding globally, leveraging its advanced technology and products while reducing its reliance on China. The company’s new energy vehicles are now present in 88 countries and regions worldwide.
Is BYD a Good Stock to Buy Now?
According to TipRanks, 1211 stock has received a Strong Buy rating, backed by Buy recommendations from all the nine analysts covering the stock. The BYD Co. share price target is HK$335.83, which implies an upside of 49.4% from the current trading level. Shares have advanced 9% year-to-date.
