Investment Rating - The investment rating for BYD is "Buy" and is maintained [10]. Core Views - BYD is accelerating its overseas expansion, particularly in the European market, which is showing strong performance. The company is enhancing its overseas channels and vehicle matrix, opening new growth opportunities. The demand for new energy vehicles is recovering under European carbon emission policies, leading to a continuous increase in market share [4][7]. - The company is building competitive advantages through technology and scale, with a firm commitment to intelligent driving transformation. The launch of the Super e-platform marks a significant innovation in pure electric technology, further solidifying BYD's advantages in electrification [4][10]. - BYD's export volume of passenger vehicles has been rapidly increasing since 2022, with expectations for continued growth in 2025. The company is diversifying its export models, including hybrid vehicles, which are contributing significantly to sales growth [7][19]. Summary by Sections Overseas Expansion - BYD's passenger car export volume has seen rapid growth, with 2024 exports expected to reach 408,000 units, a year-on-year increase of 67.9%. In the first five months of 2025, the export volume reached 357,000 units, up 102.5% year-on-year [7][19]. - The European market is a key focus, with BYD's new energy light vehicle sales in Europe reaching 69,437 units in the first five months of 2025, a year-on-year increase of 408.5% [9]. European Market Dynamics - The European new energy vehicle market is primarily driven by pure electric demand, with a penetration rate of 20.41% in the first five months of 2025, up 4.47 percentage points year-on-year. The total sales of new energy light vehicles in Europe for the same period reached 139,600 units, a year-on-year increase of 24.94% [38][39]. - BYD's market share in Europe is continuously increasing, with a market share of 5.0% in the first five months of 2025. The BYD Seal U model ranked second in sales among pure electric vehicles in Europe [9][10]. Product and Channel Development - BYD is expanding its model offerings and enhancing its hybrid vehicle exports, with the Song PLUS DM-i model achieving significant sales. The company plans to increase its dealer network in Europe to 500 by the end of 2025 [9][10]. - The pricing strategy for BYD's vehicles in overseas markets shows a significant premium compared to domestic prices, which is expected to enhance the company's profitability [35][36].

Core Insights - BYD's "Shenzhen" car carrier is set to transport over 6,800 electric vehicles to Europe, marking a significant step in the company's export strategy [2][4] - The logistics process from BYD's factory to the port has been optimized, allowing for a seamless transition with zero congestion and quick loading times [4][5] - The establishment of Xiaomo Port as a hub for automotive exports aligns with Shenzhen's goal of becoming a world-class automotive city, with a projected capacity increase to 1 million vehicles per year by 2030 [5] Company Developments - BYD has launched a fleet of six car carriers, including the "Shenzhen," which have collectively transported over 70,000 electric vehicles [5][6] - The company is expected to increase its transportation capacity to 67,000 vehicles with the addition of two new carriers, "Zhengzhou" and "Jinan" [5] Industry Trends - The direct investment in or leasing of roll-on/roll-off (RoRo) vessels by automotive companies is a strategic response to rising export demands and global supply chain challenges [6] - BYD's overseas sales have surged, with over 470,000 units sold in the first half of the year, reflecting a 132% year-on-year increase, and projections suggest annual sales could exceed 800,000 units by 2025 [6]