BYD's Tax Rebate Haircut Lands as Exports Hit 151.6% and a 1,008-km Flagship Arrives

Beijing is tightening the screws on the export machine that has powered China's electric-vehicle champions, and BYD is squarely in the frame. The Ministry of Finance and the State Taxation Administration announced Monday that the value-added tax rebate on exports of new-energy vehicles will be trimmed from 13% to 9%, effective April 1, 2027 — a change that reaches into the core of the country's overseas push.

The timing is awkward for a company that is simultaneously accelerating abroad and defending its home turf. On the same day the rebate cut was unveiled, BYD shares slipped, with a target-price reduction from U.S. bank JPMorgan adding to the drag. Press reports pointed to mounting concern over export momentum and the trajectory of operating margins.

A Stock Under Pressure

The stock has already had a bruising year. At EUR 8.32, BYD is down 22% since the start of 2026. The previous session had offered a brief reprieve, with the shares edging higher to close at EUR 8.35 before the tax news and the analyst downgrade reset the mood.

Exports as the Counterweight

Against that gloom, the overseas numbers tell a different story. BYD topped the ranking of Chinese exporters of new-energy vehicles in September, according to data from the China Passenger Car Association, shipping 174,277 units — a 151.6% jump over the same month a year earlier. Monthly exports reached 180,700 units on the company's own count, and in the U.K. alone the group notched 20,140 new registrations in September, good for a 5.76% market share.

Building on that momentum, Executive Vice President Stella Li told Bloomberg the company aims to grow its European workforce to roughly 40,000 employees by 2030, a signal that local manufacturing and staffing — not just shipments — are central to the strategy.

Two Ends of the Product Range

BYD is not waiting on policy to make its case. This week it put the Da Han, a new electric limousine, on sale in China, positioning the model as the flagship of its Dynasty line and a deliberate push into the large touring-sedan segment. Official prices were set at CNY 235,900, CNY 249,900 and CNY 275,900 — with the entry point landing below the range quoted during pre-sales. The car features fast-charging capability and, in its longest-range configuration, can cover up to 1,008 kilometers on China's CLTC test cycle.

At the opposite end of the price ladder, the company is preparing to launch the second generation of its compact Seagull entry model in China on October 20. The new version is expected to be larger than its predecessor and, according to media reports, will offer optional LiDAR sensors for partially automated driving — bringing advanced assistance features into cheaper price brackets.

A Mixed Demand Picture

The policy shift lands against uneven sales data. BYD sold 463,561 new-energy vehicles in September 2026, a solid monthly figure, yet cumulative deliveries for January through September fell 3.94% year on year to 3,131,576 units. The broader market offers little comfort: global electric-vehicle sales dipped 2% in September, while China's market contracted 18% to 1.11 million units, according to Benchmark Mineral Intelligence data cited by Reuters. Import restrictions on hybrid vehicles into the European Union add another headwind to overseas growth.

Investors will get a clearer read on the financial picture shortly. The board has scheduled a meeting for October 29, 2026 to approve unaudited results for the third quarter and the first nine months of the year.