BYD lifts annual sales target to 4 million EVs, plug-in hybrids

Chinese electric-vehicle maker BYD Co. has raised its annual sales forecast thanks to a surge in purchases of plug-in hybrid vehicles.

The Shenzhen-based EV giant has lifted its annual target to 4 million units, Morgan Stanley auto analysts led by Tim Hsiao wrote in a note Monday, citing comments from BYD’s management. That compares to the company’s previous guidance of approximately 3.6 million.

The more positive outlook comes as Chinese consumers are flocking to buy EVs and hybrids in greater numbers. New industry figures released Monday showed monthly purchases of so-called new energy vehicles crossing the 1 million threshold for the first time, cementing their dominant position over combustion-engine cars with a market share of 53.8%.

The Morgan Stanley note attributed the new target and volume and margin upsides for the second half of this year to new better-equipped car models.

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

China’s best-selling car brand appears increasingly confident, buoyed by pre-sales of its new 2,100km hybrid car.

BYD has sold 2.3 million EVs and hybrids this year, meaning it will have to deliver 425,000 units on average in each of the final four months of 2024. Such figures put the company on course to leapfrog major legacy Japanese and US auto brands by annual sales.

The Morgan Stanley analysts also cited company officials reaffirming BYD’s export ambitions. A new car-carrying ship will come online later this half to bolster its export push. BYD now projects overseas sales to double to over 450,000 by year-end, close to its original target of half a million units.

Consumer sales of electric and hybrid vehicles in China are also gaining thanks to an increased government rebate of 20,000 yuan for qualifying models.

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