① On July 10, J.P. Morgan raised the target price of BYD A shares to 440 yuan, and raised its 2024 sales estimate to 4 million vehicles. ② According to incomplete statistics from the Finance Association reporter, up to now, BYD's overseas factory's planned production capacity may have reached 1.25 million vehicles. ③ In the first half of 2024, BYD exported 0.2034 million vehicles, an increase of 173.8% over the previous year.
Financial Services Association, July 10 (Reporter Xu Hao) On the basis of BYD's 2024 annual sales target of 3.6 million vehicles, J.P. Morgan raised the target price of BYD's A shares to 440 yuan on July 10, and raised its 2024 sales estimate to 4 million vehicles. J.P. Morgan also expects that by 2026, BYD's global delivery volume will reach 6 million vehicles, of which about 1.5 million will come from overseas markets.
It seems that in order to “match” J.P. Morgan Chase's expectations, BYD has continued to release signals to expand production recently.
On July 10, according to foreign media reports, Peruvian President Boruart, who has just completed his visit to China, has issued an invitation to the Chinese electric vehicle company BYD, hoping it can set up a production plant in Peru. A statement issued later by the Peruvian government mentioned that during a meeting with BYD management on June 26, Boruart said that if BYD accepts the proposal to set up an automobile assembly plant in Peru, it will be able to take advantage of the convenient conditions of Qiankai Port built by COSCO SHIPPING and scheduled to be put into use in November.
This is another overseas factory construction information from BYD in the past month. On July 8, BYD signed an investment agreement with the Turkish Ministry of Industry and Technology. According to the agreement, BYD will invest about 1 billion US dollars in Turkey to establish a factory and R&D center with an annual production capacity of 0.15 million vehicles. The plant is scheduled to be put into operation by the end of 2026.
On July 4, BYD's Thailand plant with a planned annual production capacity of 0.15 million vehicles was completed, and BYD's 8 million new energy vehicle also went offline at this plant. Wang Chuanfu, chairman and president of BYD, who attended the launch ceremony, revealed that in the future, BYD will launch more pure electric and plug-in hybrid models in Thailand, achieve localized production, and promote the transformation and upgrading of the Thai automobile industry chain.
“Using Thailand's localized production as an example, in the future, BYD will continue to advance the globalization process and promote the construction and completion of other overseas factories.” BYD said.
A week before the first complete vehicle was rolled off the line at BYD's plant in Thailand, the Song PLUS DM-i Champion Edition, the first mass-produced NEV at BYD's Uzbekistan plant, officially launched. The first phase of the Uzbek plant is planned to have an annual production capacity of 0.05 million vehicles. According to the agreement, BYD will complete the investment in three phases to achieve a production capacity of 0.3 million vehicles per year. In Southeast Asia, in January of this year, Indonesia's Minister of Economic Coordination, Airlangga Hartarto, said that BYD will invest 1.3 billion US dollars to build an automobile factory in Indonesia, with a planned annual production capacity of 0.15 million vehicles.
In addition, BYD has production capacity plans in Hungary in Europe and Mexico and Brazil in Latin America. According to incomplete statistics from the Finance Association reporter, up to now, BYD's overseas factory's planned production capacity may have reached 1.25 million vehicles. BYD used “factory overseas” to seize key global automobile markets, providing strong growth momentum for BYD's vehicle sales.
According to the production and sales report, in June 2024, BYD sold 0.027 million new energy passenger vehicles overseas, up 156.2% year on year; in the first half of 2024, BYD exported 0.2034 million vehicles, up 173.8% year on year. According to the Minsheng Securities Research Report, in 2024, BYD will increase investment in overseas markets, set up factories in Brazil, Uzbekistan, Hungary, and Indonesia, and accelerate exports (models such as Seagulls contribute additional volume). It is expected that BYD's overseas sales will usher in rapid development in Europe and Southeast Asia. Export sales are expected to reach 0.47 million vehicles in 2024, an increase of 103.5% over the previous year, and going overseas is also expected to boost profits.
While speeding up the layout of overseas factories, BYD is also continuing to expand production capacity domestically. On July 8, BYD and the Shenzhen-Shantou Special Cooperation Zone completed the third phase of the BYD Automobile Industrial Park project, with a total investment of 6.5 billion yuan to build a battery pack line and a new energy vehicle core component factory.
The reason behind the expansion of production at home and abroad is BYD's continued high sales volume. According to data, in June of this year, BYD sold 340,211 vehicles, up 35.17% year on year, the highest in history; cumulative sales volume from January to June was 1.613 million units, up 28.46% year on year, and the annual sales target completion rate exceeded 40%. Some industry sources predict that with the completion of production line transformation at BYD's Jinan plant and the launch of new models equipped with the fifth-generation DM hybrid system, BYD is expected to reach a monthly production volume of 0.4 million vehicles in July.