BYD’s International Surge Offsets Domestic Market Pressures

BYD's equity is navigating a period of extreme market divergence. The company's performance is split between a softening home market and an extraordinary overseas sales boom, creating a volatile environment for investors. The central question is whether this explosive international growth can sustainably counterbalance domestic weakness, especially with a pivotal shareholder meeting scheduled.

Despite the global narrative, challenges in China are mounting. November sales data, while representing a monthly high for 2025, revealed concerning trends for the domestic business. The company sold 480,186 New Energy Vehicles (NEVs) at home, which actually marks a year-on-year decline of 5.25 percent. This contraction is not an isolated event; it represents the third consecutive month of falling sales compared to the prior year.

The competitive landscape in China is exerting significant pressure. The plug-in hybrid (PHEV) segment has been particularly impacted, witnessing a downturn of approximately 22 percent. The sole bright spot domestically has been battery electric vehicles (BEVs), which demonstrated resilience with growth of around 20 percent.

Overseas Operations Become Critical Lifeline

In stark contrast, BYD's international division is experiencing unprecedented momentum. Recently released figures for November show a historic export record of 131,935 New Energy Vehicles. This performance is nothing short of explosive, representing a staggering 326 percent surge compared to the same month last year. Month-over-month, overseas shipments also grew by a substantial 57 percent.

Should investors sell immediately? Or is it worth buying BYD?

This export boom is currently acting as a vital support for the stock, offsetting concerns from the home front. Market experts, including analysts from Morgan Stanley, now believe the company's ambitious target of exporting one million vehicles in 2025 is within reach.

Operational Hurdles and a Pivotal Vote

Adding a layer of complexity, BYD recently initiated a significant product recall. The action involves a software update for nearly 90,000 units of the Qin Plus DM-i model, prompted by potential manufacturing defects in battery packs that could pose safety risks. While the market has largely accounted for these operational costs, the event maintains investor vigilance.

All attention now turns to an upcoming extraordinary general meeting. Such gatherings often set the agenda for internal governance matters that can directly affect shareholder rights, making the event a potential catalyst for the stock's next significant move.

The path forward for BYD shares hinges on a delicate balance. The vigorous expansion into markets like Europe and South America is currently buffering against domestic softness. The critical uncertainty, however, is whether this international momentum can be sustained through year-end to achieve the psychologically significant milestone of one million exported units.