BYD targets Africa expansion with charging network planed in South Africa

BYD is setting its sights on South Africa, even as it faces growing problems back home. The Chinese EV giant will build up to 300 fast-charging stations across the country before 2026 ends, according to Stella Li, who serves as Executive Vice President.

Li shared the news during a Bloomberg TV interview. She said the company is just getting started with opening dealerships in South Africa.

BYD competes with Tesla, the company run by Elon Musk. Right now, BYD controls roughly one-fifth of the global market for electric cars. The company is working hard to gain ground in newer markets and across Europe.

Outside China, things are looking up for BYD. The company has spent heavily on global growth, and it seems to be paying off. Customers in other countries are drawn to the cars because they cost less than rivals while still performing well. In the UK during September, sales shot up by 880% compared to the same month last year.

This made the UK the biggest international market for BYD for the first time ever.

But China remains the biggest market by far, and that’s where the real problems are. BYD has tried cutting prices even more to bring in new buyers, but it hasn’t worked well enough.

Looking at the three months that ended in September, total sales fell compared to the same period the year before. This was the first time sales dropped year-over-year since 2020. Part of this came from normal seasonal sluggishness, but other companies like Geely Automobile Holdings Ltd., Zhejiang Leapmotor Technology Co., and Xiaomi Corp. have been taking customers away.

As reported by Cryptopolitan previously, the weak sales numbers forced BYD to change its plans. Li Yunfei, a top executive at the company, said they now expect to sell 4.6 million vehicles in 2025. The original goal was 5.5 million cars.

BYD can charge more money for its cars in foreign countries, which helps make up for some of the problems. But it doesn’t cover everything. In August, the company reported that profits fell for the first time in over three years. Net income dropped by 30% compared to the previous quarter.

Government rules create new headaches

Starting in May, Chinese officials began cracking down hard on the price war that started in early 2023. New restrictions on price cuts took away one of BYD’s main strategies. The company does have one advantage: it makes most of its own batteries and computer chips, so supply chain problems haven’t hit as hard.

But other government rules have created fresh challenges. Officials now require car companies to pay suppliers within 60 days. This is a huge change for BYD, which took an average of 275 days to pay vendors in 2023.

Looking ahead, more obstacles loom. Several markets, including Europe and Mexico, are trying to slow down cheap Chinese electric car imports. Chinese carmakers are already locked out of the US market because of high tariffs. More restrictions on Chinese-made technology in vehicles will take effect in 2027.

BYD stock has gone downhill since May

The company’s market value hit $175 billion in late May but has fallen since then due to the government crackdown and summer sales problems.

When September’s profit drop was announced, shares fell 8%, erasing more than $6 billion in market value. A few weeks later, news broke that Warren Buffett’s Berkshire Hathaway had sold off its entire stake in the company.

That holding was worth about $9 billion just before selling began in 2022. The stock dropped 7% over three days after this news came out. A BYD spokesperson said buying and selling stocks was normal business and thanked Charlie Munger and Warren Buffett for their support over the years.

While the stock bounced back somewhat, it remained lower on October 10 than it was before the sell-off news.

Despite the gloomy mood among investors, some analysts think BYD’s new car models planned for 2026 could turn things around. Yuqian Ding, who works at HSBC Holdings Plc, said a big technology upgrade might help sales grow faster next year.

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