Citi Research has named BYD (BYDDY, Financial) the top electric vehicle (EV) stock pick for 2025 due to the company's strong market performance and strategic positioning, which continue to remain on people's radar.
International sales of the Chinese automaker have seen impressive growth on the global stage, with sales jumping in December 2024. However, overseas, the company sold 57,154 units, an 85 percent monthly rise. Citi analysts say they believe that momentum will continue going into the new year as international sales stabilize near 60,000 units by January 2025. This growth is a testament to BYD's growing presence globally and in gaining the ability to compete in markets outside of China's domestic market.
BYD's success is mostly linked to its technological innovation. Last month, the company announced a 900V platform that helps its vehicles remain competitive. In addition, its standardization of vehicle intelligence between its models is a commitment to driving and accelerating the EV sector. With the new increase of 32% year on year in battery installation capacity, the company's vertically integrated production of batteries has also increased its cost efficiency.
BYD's total sales were 4.27 million units in 2024, up 41% year on year. All this includes 1.76 million battery electric vehicles (BEVs) and 2.49 million plug-in hybrid electric vehicles (PHEVs), which are huge builds not just in the segment but even within their own range.
BYD's scale, technological leadership, and operational efficiency make it well placed to weather a price war sprang by government subsidy changes, continuing its competitive edge in the EV market, says Citi.
