BYD shares soar 20% this week as traders await autopilot update

BYD’s shares are on track to record their best week since late 2020, as investor enthusiasm builds ahead of the Chinese electric vehicle (EV) maker’s keenly awaited update on its smart driving technology.

The company’s Hong Kong-listed stock has gained more than 20 per cent over five sessions, boosted by expectations that it will showcase progress on its autopilot system and introduce more intelligence features to its low-priced cars at an event scheduled on Monday (Feb 10).

Any significant breakthrough in BYD’s smart-driving technologies will likely further intensify competition in China’s EV car market, already the world’s largest and where the Shenzhen-based firm is a leader. It may also help BYD’s efforts to crack into new markets at a time when hefty tariffs imposed by the European Union and the US on Chinese EVs are hurting its outlook.

“BYD’s acceleration of autopilot progress will have a meaningful impact on the market given its position as the industry leader, and other players, especially mass market brands, will follow,” Goldman Sachs analysts including Tina Hou wrote in a note, adding that the bank expects BYD to share the recent road-test experience of its “God’s Eye” autopilot system and new model pipelines.

The race to develop and deploy assisted driving technologies is heating up in China, with EVs emerging as a key battleground. Car manufacturers, in particular EV firms including Tesla and XPeng have invested heavily and attempted to convince consumers to choose their products which could be safer and more convenient.

The features have become a major selling point to some customers and a key differentiator for some of the car brands. While fully autonomous vehicles are not yet widely available, Chinese companies are pushing the boundaries. Many have deployed the assisted driving functions not only on highways but also on more complicated urban roads.

Startups including Nio and XPeng are focusing on developing their own proprietary chips and software stacks, allowing for greater control and optimisation of the systems. Furthermore, the integration of smart cabin technologies, including advanced AI assistants and interactive displays, are expected to enhance the overall driving experience.

Shares related to the Chinese EV supply chain also staged a strong rally this week, with BYD Electronic International adding around 30 per cent and IMotion Automotive Technology Suzhou surging nearly 40 per cent, respectively.

BYD is targeting sales of between five and six million EVs and hybrid cars this year, up from 4.27 million delivered last year. The Shenzhen-based car maker finished 2024 as the world’s eighth-biggest car group by sales. BLOOMBERG