Oil Price Surge Benefits BYD, A-Share Stock Jumps Over 8% at One Point, Total Market Value Returns to Trillion Yuan

How does rising oil prices amplify BYD’s electric vehicle value advantage?

On March 23, BYD (002594.SZ) A-shares surged strongly at market open, rising over 8% during the session, with its market capitalization returning to the trillion-yuan range. By midday close, BYD was trading at 108.89 yuan per share, up 5.69%, with a trading volume exceeding 14 billion yuan.

News-wise, due to escalating Middle East geopolitical conflicts and increased shipping risks in the Strait of Hormuz, Brent crude oil futures prices approached $109 per barrel. At 24:00 on the 23rd, domestic refined oil prices also entered the sixth round of price adjustments this year, with 92-octane gasoline expected to rise by over 1.6 yuan per liter, fully entering the “9-yuan era.”

As a company that fully ceased producing fuel vehicles in March 2022 to focus on pure electric and plug-in hybrid vehicles, BYD directly benefits from the substitution effect caused by soaring fuel costs. Every 1 yuan increase in oil prices raises annual household vehicle operating costs by over 1,000 yuan. The advantage of lower “vehicle costs” for new energy vehicles is sharply magnified, directly stimulating terminal orders and market optimism for the new energy sector.

Notably, on March 5, BYD announced the second-generation Blade Battery and the “ShanChong China” strategy, becoming key technical support for the stock’s strong performance. The second-generation Blade Battery achieves ultra-fast charging capabilities of “3 minutes to charge, 9 minutes to full,” with a range exceeding 1,000 kilometers and significantly improved cold-weather charging performance. Wang Chuanfu announced that this technology will be first equipped on 10 models under the Dynasty, Ocean, Denza, and Yangwang brands, covering all price segments.

Additionally, supporting the “ShanChong China” strategy, BYD plans to build 20,000 fast-charging stations by the end of 2026, including 18,000 “station-in-station” chargers and 2,000 “high-speed” stations, with single-station power reaching 1,500 kW. Market analysts believe that the dual breakthroughs in technology and charging network will thoroughly solve core user concerns about “slow charging and short range,” further enhancing product competitiveness and laying a solid foundation for sustained sales growth.

In terms of sales, BYD is projected to sell 4.6024 million vehicles in 2025, a year-on-year increase of 7.73%. Among these, pure electric models are expected to reach 2.2567 million units, a 27.86% increase year-on-year, surpassing Tesla for the first time and becoming the world’s top pure electric vehicle seller.

The overseas market has become the largest growth driver. In 2025, BYD’s overseas sales reached 1.0496 million units, a 145% increase year-on-year; in January-February 2026, overseas sales exceeded 200,000 units, accounting for over 50% of total sales. Rising oil prices due to Middle East conflicts further boost the attractiveness of electric vehicles in Southeast Asia, with Manila dealerships in the Philippines reaching order levels comparable to the previous month within just two weeks.

Market analysis suggests that BYD has formed a comprehensive industrial chain advantage of “technology + products + capacity + channels,” positioning itself proactively in the global electrification wave. As second-generation Blade Battery models are gradually launched, fast-charging networks accelerate deployment, and overseas markets continue to break through, the company’s performance and valuation are expected to see dual improvements.

Reporting by: Nandu Bay Finance Society, Reporter Qiu Moshang