BYD Falls 2.8% on EU Hybrid Cap and China Export Rebate Cut

BYD shares fell 2.8% in Hong Kong trading on Tuesday as investors weighed developments that could slow the automaker’s export growth.

The European Union and China agreed to cap Chinese hybrid vehicle imports at 350,000 units a year. The limit poses a challenge for BYD, a major player in the growing market.

China’s Ministry of Finance said it will lower the value-added tax rebate on new energy vehicle exports from 13% to 9%. The change takes effect in April 2027 and has raised questions about future margins on overseas sales.

JPMorgan also cut its price target for BYD, adding to pressure on the stock as investors reassessed the company’s near-term international prospects.