Chinese automaker BYD Co. has become a focus of interest due to its ambitious expansion plans and expected growth in the global automotive industry.

Analysts at JPMorgan Chase & Co $JPM-0.8% recently raised their target price on BYD stock $BY6.F+0.5% by more than 80%, predicting that the company will deliver 6 million vehicles by 2026. This growth is the result of an intensive effort to increase its international presence and strategic development abroad.

New target prices have been set at HK$475 for Hong Kong shares and 440 yuan for Shenzhen shares, up more than 80% from previous levels.

The expectation of this growth is supported by a strong international market development strategy and efforts to localise in key regions. BYD is focusing on increasing its global market presence while engaging in an intense price war in its home market of China. As a result of these efforts, BYD's stock has outperformed expectations, rising more than 12% this year, while similar competitors such as Li Auto Inc. and XPeng Inc. have seen significant declines in their share values.

"BYD could experience a re-rating of its value in the next 1 to 2 years, which will be supported by its global expansion and the growing opportunity in plug-in hybrid electric vehicles," JPMorgan analysts said in a recent report.

According to JPMorgan, BYD plans to export competitive plug-in hybrid electric vehicles, including the Seal U SUV, to Europe starting in July 2024 and the Shark to Mexico starting in June 2024. In 2026, the company plans to complete and launch four new manufacturing plants or assembly lines abroad, namely in Thailand, Indonesia, Brazil and Hungary, which will play a key role in its global ambitions.

Analysts expect that these moves will not only strengthen BYD's position in the global automotive market, but also contribute to further growth in shareholder value, confirming the company's important role in transforming the automotive industry towards a more sustainable future.

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Source: Yahoo Finance, CNBC.