Chinese EV maker BYD (BYDDY) is set to ramp up its battle with rival Tesla (TSLA) by selling nearly 2 million vehicles abroad next year.
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Production Hike
According to a note from investment bank Citi (C), the Chinese auto manufacturer has guided that sales will come in between 1.5 million and 1.6 million vehicles. That is up from an expected 900,000 to 1 million vehicles sold outside China in 2025.
Citi, which met with BYD management this week, said the growth was being driven by new model launches.
BYD’s “overseas sales mix is balanced across different regions, with Europe, North America and ASEAN accounting for one-third of total 2025 overseas sales respectively,” according to Citi.
BYD management also expects a decline in capital expenditure in the fourth quarter from the previous quarter, followed by a significant decline in 2026, “considering vehicle and battery production capacity should be able to meet demand,” the report said.
BYD, which last month reported its biggest quarterly profit fall in over four years, has shipped about 20% of total vehicles overseas so far this year, double the amount in 2024.
That’s partly down to facing stiffer competition in China from local rivals such as Geely (GELYF) and Leapmotor in the budget-car segment.
Mega Moves
BYD has built at least eight mega-factories across China in the past five years. The company has been building overseas factories for local assembly in countries including Hungary and Turkey and is planning a third plant for Europe, with Spain looking the most likely destination.
Reuters reported in March that BYD has looked at other countries including Germany, though there were concerns over high labor and energy costs.
The Hungarian plant could be online later this year, with the Turkish plant set to open in 2026.
The company’s European sales are already motoring higher. They jumped 280% in the first eight months of the year from the same period in 2024 after the automaker began selling plug-in hybrids as well as fully electric cars.
In August, BYD surpassed Tesla in new car sales in Europe for the second consecutive month, with sales up over 200% year-on-year.
In September, it also revealed that it had sold a best-ever 11,271 vehicles in the U.K. compared with just 1,150 in the same month last year.
It saw its market share accelerate to 3.6% during the month, putting it in second place behind Tesla in terms of EV sales.
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