BYD(SZ:002594) Feng Huang Wang·2026-01-03 23:30Core Insights - The global electric vehicle (EV) market is expected to experience its slowest annual growth since the COVID-19 pandemic in 2020, with a projected increase of only 13% in 2026, reaching 24 million units, down from approximately 22% growth last year [1] - Factors such as the cancellation of EV tax incentives by the Trump administration, the EU's relaxation of the fuel vehicle ban set for 2035, and a slowdown in demand in China are expected to impact the industry's growth this year [1] Group 1: Market Performance - In the U.S., electric vehicle sales are projected to drop by 29% this year, falling to 1.1 million units after reaching a record of 1.5 million units in 2025 [2][3] - European EV sales are expected to grow by 14% this year, reaching 4.9 million units, building on a 33% increase in 2025 [2] Group 2: Regional Insights - In China, the largest EV market, sales are forecasted to increase from 13.3 million units in 2025 to 15.5 million units in 2026, representing a growth rate of 17%, although this is lower than the growth rates seen in the previous five years [3] - UBS predicts that China's EV sales will grow by 8% this year, including both pure electric and plug-in hybrid vehicles [4] Group 3: Competitive Landscape - BYD, a leading Chinese manufacturer, is set to surpass Tesla as the world's largest EV manufacturer by 2025, driven by the introduction of competitively priced models [3] - Ford has announced a significant asset write-down of $19.5 billion, indicating a shift in focus from electric models like the F-150 Lightning to more profitable hybrid and traditional fuel vehicles, with expectations that the share of EVs in the U.S. new car market may drop from about 10% last year to 5% [3]