China’s giant BYD is targeting 1.6 million vehicle sales overseas in 2026, as it expands both sales and production around the globe.
The information was revealed in a new note published by Citigroup analysts on Tuesday, after a meeting with the automaker’s management, as first reported by Reuters.
Earlier this year, the outlet had already reported that BYD plans for half of its total annual sales to come from international markets by 2030.
According to Citi, the Chinese new energy vehicle maker is aiming for a strong double-digit increase in its overseas expansion, supported by “growth driven by new model launches.”
BYD expects sales outside of China to represent about 900,000 to 1 million vehicles in 2025.
As of the end of October, the company’s “sales mix is balanced across different regions,” Citi noted, with “Europe, North America and ASEAN [Southeast Asian countries] accounting for one-third of total 2025 overseas sales.”
Exports
Between January 1 and October 31, a total of 780,627 vehicles were delivered overseas by BYD.
The company is now just about 120,000 vehicles short of reaching the lower end of its target.
The figures have more than doubled from the 329,073 units sold in the first ten months of 2024.
BYD exports reached a new record in June, with 90,049 units shipped. However, overseas sales have declined since then, only rebounding in October, when 83,524 units were exported.
In September, sales outside China had dropped to 71,256 units, the lowest since February.
Year-to-date numbers represent 21.1% of the total 3.7 million vehicles sold by BYD globally last month.
October was the second consecutive month in which the automaker saw registrations drop year over year.
The new Citi report did not include an overall sales target for 2026.
In September, BYD cut its annual target of 5.5 million vehicles to 4.6 million units. It needs to sell about 900,000 vehicles in the following two months to reach the guidance.
Profit Drop
The company recently reported its third quarter earnings results, disclosing a 32.6% drop in profit to 7.8 billion yuan ($1.1 billion), amid a sales growth slowdown in the past few months.
Quarterly gross margins stood at 17.6%, down 6.1% from the same period a year ago.
Citi’s new note added that BYD is expecting a decline in capital expenditure in the fourth quarter, followed by a significant decline in 2026.
According to the firm, the automaker considers “vehicle and battery production capacity should be able to meet demand” by then.
Global Expansion
The automaker has not only expanded its sales network across Africa, South America, and Europe in the past months, but has also planned several overseas manufacturing plants.
In Europe, BYD has established its local headquarters in Hungary, where it is completing a passenger vehicle plant expected to start production before the end of this year.
BYD only expanded its passenger vehicle portfolio to European markets three years ago.
Up until then, the brand had been present in the continent through its electric buses, of which it began sales in 2014, in the Netherlands.
Additionally, BYD is constructing another facility in Turkey, scheduled to begin production by late 2026.
Its first passenger vehicle plant in Brazil recently began operations, shortly before BYD expanded into Argentina.
Late last month, BYD also unveiled its first overseas-exclusive model — the ‘Racco,’ a kei car developed specifically for the Japanese market, which will be launched next summer.
