Can China’s BYD Co Maintain its Growth Estimates?

Shares of China’s BYD Co (BYDDY), China’s dominant auto brand, plunged to an 8-month low last Friday and sank -12% in November on concerns over its ability to meet sales targets amid a difficult macro outlook, along with the impact of price cuts to stave off competition.  There are also questions over whether BYD’s cars can compete with the intelligent, connected offerings from rivals, putting the company’s growth estimates into doubt.

Some analysts are concerned that BYD Co could lose market share not only to already established electric vehicle (EV) makers but also to new entrants, including Huawei Technologies. Edmond de Rothschild Asset Management said, “The growth profile of BYD is being questioned as the arrival of Huawei Technologies in the EV segment will definitely shorten the time-to-market” for new Chinese products, and BYD is “more vulnerable” given its lagging tech.