The Chinese electric vehicle giant BYD has announced a significant manufacturing achievement, producing its 15 millionth new-energy vehicle. This milestone comes as the company’s export business demonstrates robust growth, providing a crucial counterbalance to an increasingly competitive domestic market. Investor reaction to the news has been measured, with attention firmly fixed on the company’s operational outlook following the complete divestment by its former major shareholder.
Operational Performance and Market Reaction
The landmark vehicle, a Denza N8L SUV, rolled off the production line at the Jinan facility. This achievement arrives just 13 months after BYD celebrated its 10 millionth unit, underscoring the remarkable speed of its capacity expansion.
Preliminary figures for the period spanning January to November 2025 highlight the following key metrics:
- Total Sales: 4.182 million vehicles, representing an increase of 11.3% year-over-year.
- Exports: 917,000 vehicles, a figure that has already surpassed the total for the entire 2024 calendar year.
The international segment continues to be the primary engine for growth. Strong demand outside China is helping to support margins, which face pressure from intense competition within the home market.
Equity markets showed a muted response to the announcements:
* The company’s H-shares listed in Hong Kong traded largely flat to slightly positive, last quoted at 94.40 HKD.
* A-shares in Shenzhen advanced approximately +0.4%, performing in line with the broader sector.
This stability presents a notable contrast to the roughly 3% share price decline witnessed in September, which coincided with shifts in the shareholder register.
A New Chapter: Life After Berkshire Hathaway
The current trading pattern suggests the market has moved past the so-called “Buffett overhang.” Regulatory filings confirm that Berkshire Hathaway fully divested its stake in BYD by March 2025, with a public confirmation of the concluded 17-year investment following in September.
Should investors sell immediately? Or is it worth buying BYD?
With no remaining block of shares from the former major investor needing to be absorbed by the market, analysts are now focusing squarely on BYD’s fundamental business trajectory and future profitability. The short-term selling risk associated with the large stake has been eliminated.
Operationally, the company’s emphasis is pivoting toward efficiency and a deeper global footprint. While market saturation and price wars with rivals like Li Auto are tempering growth in China, BYD is accelerating its expansion into 119 countries. A new manufacturing plant in Brazil, focused on electric buses and trucks, is intended to bolster production and provide additional stability against fluctuations in the Chinese market.
Navigating Regulatory Changes and Technological Advancement
The Chinese automotive industry is approaching a pivotal regulatory shift. Beginning January 1, 2026, the purchase tax exemption for new-energy vehicles will be cut by half, marking the end of a decade of substantial government incentives.
BYD is aiming to counter this transition with a pronounced push into advanced technology:
* Autonomous Driving: Following the certification of production models with “hands-off” functionality, the company is working toward the wide-scale deployment of its Level 3 autonomous driving package. This initiative is seen as a move to narrow the valuation gap with more software-focused competitors such as XPeng and Tesla.
* Valuation Context: With a trailing price-to-earnings ratio of approximately 12.8, BYD’s shares are trading below their historical average. Maintaining this valuation hinges on the strength of export margins offsetting domestic market pressures.
This strategic evolution signals a move away from pure volume growth toward technological differentiation and higher-value offerings.
The Road Ahead
All eyes are now turning to the delivery report for January 2026. This data will serve as the first real test of consumer demand under the new, less favorable tax regime. Market experts anticipate a moderate softening—a “soft landing”—in the first quarter of 2026, cushioned by a healthy order backlog from Europe and Southeast Asia.
From a technical analysis perspective, BYD’s H-shares have recently established a support zone in the mid-90 HKD range. On the upside, the 100 HKD level remains a key psychological barrier; a sustained break above it could signal the beginning of a more robust recovery phase.
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