The surge in BYD’s stock pushed its market capitalisation beyond the combined market value of India’s top five automakers. As of Tuesday, Maruti Suzuki, the country’s largest automaker, has a market capitalisation of $42.5 billion, while Mahindra & Mahindra (M&M) and Tata Motors are valued at $40 billion and $32.8 billion, respectively. Meanwhile, Bajaj Auto and Eicher Motors command market capitalisation of $24.4 billion and $16.1 billion, respectively.
Shares of BYD, Tesla’s Chinese rival, surged as much as 6% on Tuesday, bringing their year-to-date gains to 36%. Notably, the company’s market capitalisation has jumped 48% in US dollar terms since the beginning of the year, in contrast to a 6% decline in the combined valuation of India’s top five automakers during the same period.
Additionally, BYD’s market capitalisation also surpassed the combined market capitalisation of Ford Motor Co., General Motors Co., and Volkswagen AG, according to Bloomberg data.
Also read: BYD shares jump to a record high after unveiling five-minute EV battery
Market participants are of the view that BYD’s stock could gain further momentum following the launch of its new EV supercharging platform, which can deliver 400 kilometers of driving range in just five minutes. “We believe this is another sign that BYD is undergoing a strategic shift,” analysts at Macquarie Capital wrote in an investor note.
Interestingly, the surge in BYD’s market capitalisation has also narrowed its gap with rival Tesla. In February, Tesla’s shipments to China dropped 49% year-on-year to 30,688 vehicles, marking the lowest monthly figure since July 2022. As of Tuesday, BYD’s market capitalisation stood at one-fifth of Tesla’s $765.6 billion.
Analysts remain highly bullish on BYD, with nearly 94% recommending a “Buy.” Of the 47 analysts tracking the stock on Bloomberg, 44 have a “Buy” rating, while only one has a “Sell” rating and two suggest a “Hold.”
