JPMorgan Chase has raised its price target for BYD by more than 60 per cent, as it expects China’s leading electric vehicle (EV) maker to deliver 6.5 million units globally by 2026 on the back of its rapid global expansion and roll-out of its self-driving system.

The US investment bank on Thursday increased the target price for BYD’s Hong Kong and Shenzhen shares to HK$600 and 560 yuan, respectively, by June 2026, and reaffirmed its buy rating.

“We expect 2026 to be an important strategic turning point and milestone for BYD’s global expansion ambitions, as the company’s four overseas production bases in Thailand, Indonesia, Brazil, and Hungary will be completed and gradually increase production capacity,” analysts including Nick Lai said in a note.

The analysts expect BYD’s sales this year to increase 30 per cent to about 5.5 million vehicles. BYD delivered 4.27 million pure electric and plug-in hybrid vehicles last year, an increase of 41.3 per cent from a year earlier.

It is likely to surpass Volkswagen to become China’s largest carmaker – including EVs and petrol-powered vehicles – in 2024. Volkswagen has yet to release its full-year sales figures.

BYD’s shares rose 1.9 per cent to HK$375.00 in Hong Kong on Thursday.

Despite higher EU tariffs on Chinese EVs, JPMorgan expects BYD to compete overseas through its products and features, rather than prices.

In addition to its overseas strategy, BYD’s recently released smart-driving system “God’s Eye” was expected to be a strong factor for sales growth, the analysts said.

BYD unveiled its proprietary autopilot system last week, saying it would be added to at least 21 EV models at no additional cost.

The analysts also believe BYD would drive the widespread adoption of level 2+ self-driving in mainland China, as its product line-up covers various vehicle segments, wide price ranges and an extensive distribution network of over 1,000 dealers nationwide.

With no change in price, BYD would be able to absorb the costs of its self-driving system through strong bargaining power with suppliers and its substantial sales volume, which achieves economies of scale, according to JPMorgan.

“No other Chinese brand possesses a similar product offering and distribution capability,” the analysts said.