From China Squeeze to Global Pivot: BYD Rolls Out Hybrids in Indonesia and Eyes European Factories

BYD’s net income fell to 4.1B RMB amid fierce domestic competition, but record international deliveries, European factory talks, and a Southeast Asia hybrid blitz signal a bold global counteroffensive.

BYD’s first-quarter profit slumped 55.4% to 4.1 billion RMB as relentless price competition in its home market continued to squeeze margins. Yet the Chinese electric vehicle giant is mounting a multi-pronged international counteroffensive, combining a hybrid blitz in Southeast Asia with negotiations to acquire idle European factories and a rapid expansion of its retail footprint.

In Indonesia, BYD has launched the M6 DM, a plug-in hybrid seven-seater that is not sold in China and was developed specifically for overseas markets. The company claims fuel consumption of 2.9 litres per 100 km and a combined range of 2,100 km. The model targets a market where EV penetration has rocketed from below 1% in 2022 to around 20% in the first quarter of 2026. Since entering the country in early 2024, BYD has placed some 90,000 new-energy vehicles on the road, leaning on the hybrid’s flexibility to attract buyers in regions where charging infrastructure remains patchy.

Across Europe, the company is pursuing a parallel strategy to bypass escalating tariffs on Chinese-made EVs. Executive Vice President Stella Li confirmed talks with established manufacturers about taking over plants that are being reassessed or restructured, including facilities owned by Stellantis. Rather than building new factories, BYD plans to convert existing sites, saving time and sidestepping import hurdles. The shift would transform the company from a pure exporter into a local producer, undercutting the European Union’s tariff debate at its root. Meanwhile, within two years BYD has opened 135 showrooms in Britain, giving it more physical presence than several legacy carmakers in one of Europe’s most important auto markets.

The company is also accelerating its assault on Australia, announcing four new or revamped models for the second half of 2026, including the M9 and the Ti7 SUV. Its Australian lineup has swelled from four to 11 vehicles in two years, covering segments from compacts to commercial vehicles. In Europe’s heavy-truck market, BYD’s e-truck chief Bar?? Akyalç?m outlined plans to supply fleet operators not just with vehicles but also with energy storage and management systems, addressing the grid constraints that often stall electrification. Globally, BYD already operates more than 120,000 electric commercial vehicles.

The international push extends to less conventional territory. Stella Li confirmed discussions with Formula One management about a potential entry via the Alpine team, and BYD is also exploring interest in a Renault engine plant in France. Closer to home, in Hungary, where BYD is building a large production facility, Prime Minister Peter Magyar has demanded strict adherence to local labour and environmental standards. BYD has instructed its contractors to comply fully.

Overseas momentum is building fast. In April 2026, international deliveries hit a record roughly 135,000 vehicles, a 70% jump year-on-year. But the stock market remains divided: BYD shares fell 3.4% to HK$90.65 after closing at HK$90.55 in the prior session, reflecting the tension between surging export volume and sinking profitability at home. The near-term focus for investors is whether the new hybrids in Indonesia can ramp quickly and whether margins abroad can hold firm against the domestic drag.