BYD Flags Shark 6 Software Flaw as JPMorgan Trims Its Rating

BYD disclosed a Shark 6 infotainment vulnerability as September deliveries hit 463,561; JPMorgan cut the stock to Neutral with an HKD 88 target.

A software vulnerability in the infotainment system of BYD's Shark 6 has handed the Chinese automaker an unwelcome repair job, one that lands as vehicle software architecture and cybersecurity draw mounting scrutiny from both buyers and regulators. The flaw could let unauthorized applications be installed on the system, the company disclosed.

The disclosure comes amid a broader push on the product side. On September 28, BYD previewed the second generation of its Seal 07 sedan, a redesign that will offer both fully electric drivetrains and plug-in hybrids — a dual-track electrification strategy the manufacturer continues to pursue across its lineup.

A Record Month Built on Overseas Demand

September deliveries rose 17 percent year over year to 463,561 vehicles, the company's strongest monthly tally of 2026. Exports of passenger cars and pickups did the heavy lifting, surging 153.9 percent compared with the same month a year earlier.

That figure sits alongside a more sobering trend. Sales of new-energy vehicles climbed 16.98 percent year over year in September, yet across the first nine months of 2026 total volume reached 3,131,576 vehicles — a decline of 3.9 percent from the prior-year period. The gap between booming foreign sales and cautious Chinese consumers captures the industry's current bind: international markets are opening fresh channels, but the home market remains decisive for hitting volume targets.

Discount campaigns and softer demand continue to shape the new-energy vehicle market, keeping competitive pressure firmly in place.

Nomura Points to Weak Domestic Orders

Friday's trading reflected that unease. BYD shares shed 2.4 percent to close at EUR 8.39, with a broad pullback in China's electric vehicle market weighing on the whole sector. According to Dow Jones, muted customer demand during the traditional Chinese peak season dampened sentiment and dragged Hong Kong listings lower.

Nomura analysts added to the pressure, citing weaker-than-expected domestic demand and disappointing order intake. Uncertainty over Chinese buying behavior overshadowed the company's recent operational updates by the end of the week.

JPMorgan Steps Back, Board Stays the Course

Caution has spread to the analyst community as well. JPMorgan downgraded the stock from Overweight to Neutral on September 29 and cut its price target from HKD 124 to HKD 88, pointing to persistent weakness in the automotive sector and structural challenges stretching to 2027.

At the leadership level, BYD is betting on continuity. Shareholders confirmed Wang Chuanfu as executive director, after which the board elected him chairman for a three-year term and named him president. An extraordinary general meeting on September 29 also appointed three new directors, while Wang retained his roles as chairman and CEO.

Internationally, the manufacturer is pressing ahead with its overseas build-out. For its luxury Yangwang brand, BYD announced an event marking its introduction to overseas markets.

The stock currently trades at EUR 8.42, down 21 percent since the start of the year.