Shares of BYD climbed 7.8% in Hong Kong, marking their strongest daily gain in over a year, after reports of export orders totaling around 100,000 vehicles from Mexico and Argentina boosted investor sentiment. The orders, tied to the company’s production hub in Brazil, reinforced expectations that overseas markets will become an increasingly important driver of growth.
The rally placed BYD among the top gainers in the Hang Seng Technology Index, alongside Nio and Xiaomi. Eugene Hsiao, strategist, Macquarie Capital, said the development supports the view that international sales will play a larger role in the company’s long-term earnings profile. “This is positive for the broader thesis for BYD,” he said, noting that overseas demand is expected to become a primary growth engine.
Latin America Gains Importance in Export Strategy
The reported orders underscore the growing role of Latin America in BYD’s global expansion. Vice President Stella Li said Mexico and Argentina each accounted for roughly 50,000 units, with production sourced from the company’s Brazilian operations.
The plant currently has capacity for 150,000 vehicles annually, with plans to scale output to 600,000 units over time. The expansion is intended to support rising export demand while reducing logistical costs and tariff exposure across the region.
The push abroad comes as BYD faces softer conditions in its domestic market. The company reported global sales of 400,241 units in the first two months of the year, a 36% year-on-year decline. Despite this, overseas shipments have continued to grow, with the company targeting 1.3 million international sales in 2026.
A notable shift occurred in February, when overseas deliveries reached 100,600 units, exceeding domestic sales of 89,590 units for the first time.
Expanding Footprint Across Key Regional Market
In Mexico, BYD has expanded rapidly, selling 80,000 vehicles between March 2023 and July 2025 and reaching a 5% market share, according to company figures. While its sales are not yet reflected in official data from INEGI, the trend points to accelerating market penetration.
Argentina, a more recent entry point, is also gaining traction. BYD began operations there in October 2025, following the introduction of incentives for lower-cost electric vehicles. Registrations reached 1,728 units in the first two months of the year, including 813 vehicles in February, according to SIOMAA. Earlier shipments of around 5,800 units from Singapore suggest a ramp-up in supply.
Brazil remains central to the company’s regional strategy, serving as both a production and distribution hub. BYD sold 112,940 vehicles in the country last year, according to FENABRAVE, making it its largest market outside China.
The company also dominates Brazil’s EV segment, accounting for 71.94% of battery electric vehicle sales and 26.87% of hybrids, reflecting strong positioning as electric mobility adoption accelerates.
Industry Tailwinds Support Outlook
Broader market dynamics have also supported investor confidence in BYD. Analysts at Goldman Sachs noted that rising oil prices could accelerate the adoption of electric vehicles in global markets, while lower lithium costs are improving battery economics and pricing competitiveness.
Battery suppliers moved higher alongside automakers. Shares of CATL rose 7.9% in Hong Kong, while Eve Energy gained more than 2% in Shenzhen, reflecting expectations of sustained demand across EV supply chains.
