BYD Shares Plunge as Turkey Factory Pause Clouds European Sales Boom
27.06.2026 - 22:32:04 | boerse-global.de
BYD shares hit a new 52-week low on Friday, capping a week in which the Chinese electric-vehicle maker confirmed it is shelving its Turkish factory plans even as European registration numbers more than doubled. The stock closed at €8.29, down 3%, after touching an intraday trough of €8.08. The decline extends a brutal run that has wiped nearly 44% from the July 2025 high of €14.80.
The immediate catalyst was a strategic U-turn in Europe. Vice President Stella Li confirmed that BYD is putting its planned €1 billion plant in Manisa, Turkey, on hold. The facility was meant to produce 150,000 vehicles a year and give the company tariff-free access to the EU via Turkey’s customs union with the bloc. But construction never started, and the Turkish government has now withdrawn the tax and customs incentives it had offered. Ankara has also warned that BYD may have to repay investment grants already disbursed if the promised spending does not materialize.
BYD is shifting focus to its plant in Szeged, Hungary, but that timetable has slipped. Full vehicle assembly is now not expected until the fourth quarter of 2026, roughly a year later than originally planned. The delay leaves the company reliant on exports from China for longer, making it more exposed to the EU’s planned retaliatory tariffs on Chinese electric and hybrid vehicles – exactly the risk that has been weighing on investor sentiment for months.
Should investors sell immediately? Or is it worth buying BYD?
The European market itself is thriving. BYD registered 32,380 new vehicles in the region in May, a 136.6% jump from a year earlier, and cumulative registrations for the first five months reached 135,300, up 145.2%. The company has overtaken Chinese rival SAIC Motor in monthly European rankings. Yet that strength cannot mask the troubles at home. Global sales inched up just 0.3% in May to 383,453 units, as domestic volumes collapsed 24%. Exports, however, surged 80.4% to 160,644 units, underscoring the diverging fortunes. Over the first five months, total sales of roughly 1.4 million EVs were down 20.3% year-on-year, squeezed by an aggressive price war in China.
The disconnect between booming export markets and a shrinking home base has driven the stock into deeply oversold territory. The 14-day relative strength index stands at 20.6, well below the 30 threshold that often signals a stock is oversold. The shares trade nearly 20% below their 50-day moving average and about 24% below the 200-day average of €10.84. Year to date, the stock has lost roughly a quarter of its value.
Investors are looking for catalysts that could break the downward spiral. The next test comes on 2 July, when BYD unveils the Seal 08 sedan, equipped with the second-generation Blade battery and a new suspension system – part of a push into the premium segment. A few days later, at the Goodwood Festival of Speed, the company will stage eight world premieres, including models from its Denza and Yangwang sub-brands, in what it says will be the largest exhibitor stand in the festival’s history.
But those launches are unlikely to move the stock unless they are accompanied by clarity on European production and signs that the domestic downturn is easing. The technical indicators suggest the shares are heavily oversold, but analysts caution that a low RSI alone does not guarantee a rebound when the fundamental headwinds – from tariffs to a weak home market – remain so persistent.
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