China’s BYD aims to sell up to 1.6 million vehicles abroad in 2026, Citi says

BEIJING (Reuters) -Chinese electric vehicle maker BYD aims to sell up to 1.6 million vehicles abroad next year, ​doubling down on overseas expansions with high double-digit growth from 2025, ‌Citi said in a report on Tuesday.

Overseas sales guidance of 1.5-1.6 million vehicles is ‌up from an expected 900,000 to 1 million vehicles sold outside China in 2025, “with growth driven by new model launches,” the Citi note said, citing a meeting with BYD management on Tuesday.

BYD’s “overseas sales mix ⁠is balanced across different regions,‌ with Europe, North America and ASEAN accounting for one-third of total 2025 overseas sales respectively,” according to Citi.‍

BYD management also expects a decline in capital expenditure in the fourth quarter from the previous quarter, followed by a significant decline in 2026, “considering vehicle and battery production ​capacity should be able to meet demand,” the report said.

BYD ‌didn’t immediately respond to a request for comment.

Citi didn’t mention an overall BYD sales target for 2026. The automaker reduced the 2025 target by 16% to 4.6 million vehicles after its sales at home fell in recent months.

BYD, which last month reported its biggest quarterly profit fall ⁠in over four years, has shipped about 20%​ of total vehicles overseas so far this ​year, double the 2024 level.

BYD is facing stiffer competition in China from local rivals such as Geely and Leapmotor in the ‍budget car segment.

BYD ⁠has built at least eight mega factories across China in the past five years. The company has been building overseas factories for local assembly in ⁠countries including Hungary and Brazil and is planning a third plant for Europe with Spain as the ‌top candidate, Reuters has reported previously.

(Reporting by Qiaoyi ‌Li and Brenda GohEditing by Mark Potter)