March 4, 2025- Chinese electric vehicle manufacturer BYD announced on Tuesday that it had raised US$ 5.59 billion in a primary share sale. This marks the largest such deal in Hong Kong in four years and highlights the growing influence of electric vehicles industry.
BYD sold 129.8 million shares in the deal, up from the original 118 million shares that were planned during the deal on Monday. A key investor in this share sale was the United Arab Emirates-based Al-Futtaim Family Office.
BYD, through its competitive and affordable battery-powered vehicles, has emerged rapidly in China. In fact, it has become China’s largest automaker since 2022. According to estimates, around 90% of BYD’s total sales of 4 million cars in 2024 were in China. It accounted for more than 1/3rd of the total sales of pure electric and plug-in hybrids in the world’s largest auto market.
However, the company is now focused on expanding its production and sales across other nations as well. The latest capital raised by BYD will help it expand its production capacity, improve battery technology, and accelerate global expansion.
BYD is currently working on setting up local production facilities in Hungary, Turkey, and Brazil. For instance, it is planning to build a plant near Manisa, Turkey, with production expected to commence in October 2025. This facility will be used to manufacture electric and hybrid vehicles.
Similarly, BYD will look to use more resources to expand its presence in other nations as well. This will not only boost the company’s sales but also help it mitigate the impact of increased import tariffs on Chinese-made electric vehicles.
BYD’s rising funding, sales, and expansion could prompt Western automakers like GM and Ford to accelerate their EV strategies. They can push them to adopt aggressive pricing and production tactics.
Increasing funding and production facility expansions are expected to positively impact the overall growth of the electric vehicle sector. According to Coherent Market Insight (CMI), the global electric car industry is projected to record a robust CAGR of 24.5%, with total size reaching a mammoth US$ 1,982.76 billion by 2032.
“Rapid expansion of electric automakers like BYD across different nations will act as a catalyst triggering growth of the electric car sector. These auto giants specialize in producing efficient and affordable electric vehicles, leading to their increased popularity, says a senior analyst at CMI.”
BYD’s success in securing massive funds signals strong investor confidence in the EV industry. It could positively impact Tesla and Rivian stocks, while also attracting more investments into EV startups.
Electric vehicle manufacturers are expected to invest more in improving battery technology. They will look to use different resources to develop innovative EVs and establish new facilities across various nations. This will play a key role in boosting overall growth of the electric car industry in the coming years.
