Beijing: BYD shares rose on Monday even as Chinese stock markets declined, with investors responding to higher fuel prices that are expected to strengthen demand for electric vehicles.
The automaker’s Shenzhen-listed stock gained about 4.9 percent to 108.10 yuan, its highest level since October 2025. In contrast, major indices including the Shanghai Composite and Shenzhen Component fell by more than 3 percent, reflecting broader market weakness.
The divergence comes as global crude prices push up domestic fuel costs in China, increasing the relative cost of petrol-powered vehicles and supporting the appeal of new energy vehicles (NEVs).
Fuel price adjustments and market impact
Market estimates had pointed to a significant increase in domestic fuel prices, potentially the largest this year. However, China’s National Development and Reform Commission introduced temporary measures to limit the rise, easing the impact on consumers.
Despite the adjustment, retail fuel prices are still set to increase, adding to operating costs for conventional vehicles. This shift is widely seen as reinforcing demand for electric and hybrid alternatives.
BYD strengthens position in EV market
BYD, which ended production of internal combustion engine vehicles in 2022, continues to expand its presence in both battery electric and plug-in hybrid segments. Company data shows strong sales performance in 2025, with electric vehicle deliveries exceeding 2.25 million units.
The company has also introduced updated battery and fast-charging technologies, including systems capable of significantly reducing charging times.
Also Read: BYD’s Flash Charging 2.0 draws consumer interest in China after new battery launch
Plans are underway to expand its charging network nationwide by 2026, further supporting EV adoption.
Analysts say the combination of rising fuel costs and continued investment in EV technology is likely to sustain momentum in the sector, with BYD positioned among key beneficiaries.
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