Investing.com -- As per a Citi Research note, BYD (SZ:002594) stands out as the top electric vehicle stock pick for 2025. The company’s strong performance and positioning in the EV market have drawn positive evaluations from analysts.
BYD’s global reach has been a factor in its rise, with overseas sales showing robust growth. December 2024 saw a record 57,154 units sold internationally, marking an 85% month-on-month increase.
Citi forecasts this upward trend to continue into January 2025, with overseas sales expected to stabilize around 60,000 units.
This international momentum reflects the company’s ability to compete effectively beyond its domestic market.
The company’s technological advancements also play a critical role in its leadership. The introduction of a 900V platform, which enhances product competitiveness, and the standardization of vehicle intelligence across its range highlight BYD's innovation-driven approach.
Additionally, BYD's strong battery production capabilities, evidenced by a 32% year-on-year increase in battery installation capacity in December 2024, underline its vertically integrated model, which offers cost advantages.
BYD’s sales performance in 2024 was exceptional, with total sales reaching 4.27 million units, representing a 41% year-on-year increase. This included 1.76 million battery electric vehicles (BEVs), a segment that grew 12% year-on-year.
Plug-in hybrid electric vehicles saw even more substantial growth, with a 73% year-on-year increase to 2.49 million units.
Citi analysts also noted that BYD is well-positioned to navigate potential challenges in the EV market, such as a possible price war if government subsidies are adjusted.
The company’s scale and operational efficiency provide it with a competitive edge in maintaining profitability under such scenarios.