Key Points
Where art thou, growth? After quickly and impressively catching Tesla (NASDAQ: TSLA) in global electric vehicle (EV) sales, BYD (OTC: BYDDY) is feeling a little pressure as its sales declined roughly 20% in March, compared to the previous year. In fact, if you’re keeping track, March marks the seventh consecutive month of lower sales than the previous year for BYD, as it grapples with a price war and increased low-cost competition in its domestic Chinese market.
However, there’s good news for investors: Growth overseas is booming, and the rising price of oil is driving demand in some regions for cars that run on something other than gas.
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Exports surge
Briefly zooming in on the details, BYD reportedly sold just over 300,000 new-energy vehicles (NEVs) in March, which includes full-electric vehicles and plug-in hybrid models. That result was a welcomed 57% surge over February, but was still a year-over-year decline. With China’s automotive market reeling from a pullback in government incentives, increased competition, and a brutal price war that’s eroding margins, BYD is shifting into higher gears overseas to drive growth.
Image source: BYD Co.
In March, BYD exported 120,083 NEVs, which was a strong 65% spike over the prior year, and through the first three months of the year, BYD has sold over 321,000 NEVs overseas. Even better, this is likely just the beginning of its overseas growth story as BYD has localized production coming online and has new models launching in a long list of vehicle segments.
Only three months ago, BYD believed it would sell 1.3 million NEVs overseas in 2026, and it has already bumped that estimate up 15% to 1.5 million NEVs. For context and perspective, in March roughly 40% of BYDs sales came overseas and that could realistically reach half of its total in a month or two. BYD CEO Wang Chuanfu reportedly told analysts in late March that the EV maker expects rising oil prices to drive overseas EV sales to “another level” in 2026. That, of course, was before the most recent developments in the Iran war, including a ceasefire and U.S. blockade of the Strait of Hormuz.
According to Chuanfu, the automaker is selling as many vehicles in a single day as it normally would in two weeks in markets such as Australia, the Philippines, and New Zealand. Another positive indicator was found at the largest auto show in Southeast Asia, the Bangkok Motor Show, where BYD reportedly secured more orders than any automotive brand during the nearly two-week event.
What it all means
For investors, it’s fair to call seven consecutive months of year-over-year sales declines a bit concerning, but really it’s more of a speed bump as the Chinese market drives toward consolidation. The silver lining is that BYD’s overseas sales are quickly expanding with plenty of room to grow.
Further, overseas sales for BYD are higher-margin and even with tariffs in some cases, its growth is supported by the automaker’s incredibly affordable lineup. BYD stands to gain with higher oil prices lasting longer, but regardless of what happens with that, the company is positioned well for long-term overseas growth.
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Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.