BYD Files Immersion-Cooling Patent as JPMorgan Cuts Rating and September Volumes Roll In

BYD seeks patent on immersion battery cooling; September NEV sales hit 463,561 units, but nine-month sales fell 3.94% and JPMorgan cut the stock to Neutral.

BYD has lodged a patent application for a battery-cooling concept that submerges cell modules entirely in a dielectric fluid, adding a fresh layer to the Chinese automaker's technology pipeline even as its shares labour under a double-digit year-to-date decline.

China's intellectual property authority published the filing yesterday, according to media reports. The original submission dates back to March 2025. Rather than routing coolant through channels along the outer faces of the modules, the described method lets a non-conductive liquid circulate directly around individual storage cells — an approach known as immersion cooling. That direct contact yields more uniform heat dissipation and can smooth out temperature spikes during operation. Thermal behaviour ranks as a decisive factor for the efficiency, durability and safety of high-voltage batteries, particularly under heavy charging loads or demanding use.

September Output and Deliveries in Focus

On the operational front, BYD reported production of 463,864 new-energy vehicles for September alongside sales of 463,561 units, figures the company flagged as preliminary and unaudited. Battery-electric passenger cars accounted for the bulk of deliveries at 273,143 units, while plug-in hybrids contributed 183,570 vehicles. Exports of new-energy vehicles reached 180,700 units during the month, underscoring the growing weight of overseas business.

The broader picture is less buoyant. Across the first nine months of the calendar year, cumulative sales totalled 3,131,576 vehicles — a decline of 3.94 percent compared with the same period a year earlier.

In German trading, the stock closed Monday at EUR 8.53, a daily gain of 1.6 percent. Since the start of the year, however, the shares have shed 20 percent. At a current price of EUR 8.52, the paper sits 6.1 percent above its 52-week low.

Model Offensive Meets a Regulatory Hurdle

BYD is pressing ahead with an expansion of its line-up to reignite demand. Deliveries of the Formula S for the Fang Cheng Bao sub-brand began in late September, priced in China between 189,900 and 229,900 yuan. Management expects monthly sales of more than 10,000 to as many as 15,000 units over the medium term when the GT variant is included. Customer registration has also opened for the Ti 9, with first deliveries of the SUV flagship slated for the fourth quarter.

A symbolic milestone arrived on the production line: on 29 September, the Da Han flagship sedan became the ten-millionth vehicle to roll off the Dynasty series. The official market launch of the new model is set for 13 October.

Not everything went smoothly. China's market regulator announced a recall on 18 September covering 183,211 vehicles from the Tang and Qin model lines, citing potentially defective brake-pedal bump stops that the manufacturer will replace free of charge.

JPMorgan Steps to the Sidelines

Analysts at JPMorgan downgraded the stock from Overweight to Neutral on 29 September, trimming the price target to HKD 88 from HKD 124. The brokerage pointed to anticipated weakness in China's auto sector in the second half of 2026, subdued domestic demand and rising input costs. It also flagged political uncertainties and tariff as well as non-tariff trade barriers facing BYD's global expansion.

Shareholders, meanwhile, signed off on governance matters at the most recent annual general meeting, approving charter amendments, board elections, director remuneration and an asset-pool transaction involving external guarantees.

With the share price trading below its long-term moving averages, the market is showing restraint about the company's continued expansion and margin trajectory at home.