BYD said on a post-earnings analyst call that it is "highly confident" it can attain its 2026 target of 1.5 million overseas vehicle sales, or potentially exceed that figure, according to two people with direct knowledge of the discussion. The automaker indicated that international markets could eventually represent roughly half of its total business.
Earlier this year, BYD set an export objective of 1.3 million units for the current year, a downward revision from the as-much-as 1.6 million units figure the company's management previously mentioned to Citi in November. The share of BYD's sales coming from overseas markets rose significantly last year, more than doubling to 22.7% of total sales, and climbed further to 50% in the January-February period.
The company reported a larger-than-expected drop in profit for 2025, attributing the decline in part to intense price competition at home. Management warned that the year ahead could be challenging as competition intensifies and domestic demand softens.
According to one of the two people familiar with the call, BYD expects its expansion outside China to feature localization of production. The company's factories in Europe and Indonesia are anticipated to begin mass production around March or April of this year, the source said. BYD did not respond to a request for comment. The two people declined to be named because the call was not public.
Company representatives told analysts they do not intend to rely on price wars as a strategy. Instead, BYD plans to emphasize technology and innovation, maintaining continuous research and development spending to support that approach, the two sources said.
In parallel, Chinese authorities have been tightening oversight of aggressive competition in the auto sector. Regulators recently issued pricing guidance designed to discourage below-cost selling within the auto supply chain.
Summary of the situation - BYD expects rapid expansion of overseas sales, sees exports as a rising share of total sales, is shifting toward local production abroad, and is navigating profit pressure at home from pricing competition and weaker domestic demand.
Context provided in the call - Targets and timing mentioned on the analyst call include a 2026 overseas sales goal of 1.5 million units, an export target of 1.3 million for the current year, and anticipated mass production at European and Indonesian facilities around March or April.
Corporate strategy - Management favors competing on technology and innovation with sustained R&D investment rather than engaging in price-led competition.