BYD's Diplomatic Opening Meets European Factory Race as Export Machine Rolls On

BYD could join Xi Jinping's September 24 Washington trip; it plans four European plants as overseas sales jumped 85.72% in Jan-Aug 2026.

Chinese officials are weighing whether to place BYD in the business delegation accompanying President Xi Jinping to Washington for a state visit scheduled for 24 September, according to a Bloomberg report. Senior functionaries around Xi's chief of staff Cai Qi are reportedly reviewing a shortlist of Chinese corporate heavyweights for the trip, and the mere prospect of BYD's inclusion lifted the stock 3.7 percent to EUR 9.07 in the previous session.

The symbolism matters less to investors than the substance. BYD sits squarely at the center of US-China friction over electric vehicles and their supply chains, so any diplomatic thaw between Washington and Beijing would ease pressure on export-heavy manufacturers. Hyundai CEO Jose Munoz offered a reminder of what is at stake on Friday in San Jose, warning that Chinese vehicles could flood the US market much as they have in Europe absent protective measures. In Italy, Spain and France, he noted, Chinese models undercut comparable offerings from established automakers by 30 to 40 percent.

Four Plants, One Continent

While the diplomatic track unfolds, BYD is pressing ahead with a European build-out that Alfredo Altavilla, the former Fiat Chrysler executive now advising the company on the continent, confirmed at an event in Turin. The long-term blueprint calls for four plants in Europe: three vehicle assembly sites plus a battery factory. A decision on the second assembly location is due by year-end, with Spain and France seen as frontrunners and Italy relegated to "Plan B" status.

The logic behind the spending is straightforward. EU tariffs on Chinese EVs leave local production as the only viable route to scale, and Brussels is tightening the screws further. The European Commission has asked Beijing to voluntarily cap hybrid exports at roughly 15 percent market share, after imports surged more than tenfold from 3,800 vehicles in October 2024 to 50,000 in July 2026. Commission President Ursula von der Leyen has put the EU's trade deficit with China at about EUR 1 billion per day. Peking is expected to deliver its response by October.

Overseas Sales Set the Pace

Operationally, BYD is delivering numbers that make the regulatory fight worth having. From January through August 2026 the group sold 1,162,260 vehicles abroad, an 85.72 percent jump over the same period a year earlier. August alone set a record with 189,466 units, accounting for 43.03 percent of total sales. Deutsche Bank expects 1.9 to 2.0 million international deliveries for the full year, rising above 2.5 million in 2027.

The August export figure of roughly 184,000 passenger cars, up 131 percent year-on-year, represented 35.4 percent of all Chinese NEV exports. To move that volume, BYD is reportedly negotiating an order for ten car-carrying vessels with 9,200-vehicle capacity each, to be built by China Merchants Industry for delivery between 2027 and 2029.

Distribution is expanding in parallel. In Spain, eleven new dealer groups have joined, bringing the network to 107 sales points and 86 service centers, with targets of 130 and 120 respectively by year-end. BYD's nearly 12,000 EVs sold in Spain since the start of the year put it ahead of Tesla there. In Italy, country manager Alessandro Grosso is aiming to double sales in 2026.

A Bruised Share Price and a Full Agenda

None of this has translated into stock market strength. The shares trade 28 percent below their 52-week high of EUR 12.49 set last October, down 16 percent year-to-date and 27 percent over twelve months. An RSI of 41 offers no oversold signal, leaving the stock caught between operational momentum and regulatory uncertainty in its two key overseas markets.

Sentiment has not been helped by labor unrest. Online posts suggested an annual profit-sharing payout had been scrapped, drawing loud criticism on social media; the company has not commented. The unease lands after first-half profit already fell by roughly a fifth, a sign that the price war in BYD's Chinese home market continues to weigh on margins.

Shareholders have a date circled: 29 September, when an extraordinary general meeting will vote on charter amendments, the election or re-election of directors, and the launch of an asset-pool business with external guarantees. On the charts, the picture remains tense — with an RSI of 41.9 and the price 6.9 percent below its 50-day moving average, the recent bounce is a first positive signal rather than a confirmed turn.