Shares of BYD and Xiaomi surge as June delivery figures fuel optimism

Shares of major Chinese electric vehicle manufacturers, BYD and Xiaomi, saw a notable increase on Thursday, driven by encouraging delivery figures for June that raised investor optimism. BYD's stock surged by approximately 9%, while Xiaomi's shares rose around 5%. Xiaomi announced that it achieved over 30,000 vehicle deliveries for the third consecutive month in June. The company's total deliveries from January to June exceeded 180,000 units, which accounts for about 33% of its ambitious goal of 550,000 units for the year 2026, as reported by Citi. Analysts from Citi suggested that Xiaomi's stock might see a rebound in August, particularly with the anticipated launch of its YU9 luxury SUV. They noted that any signs of improvement in memory sectors from Chinese manufacturers could also positively influence Xiaomi's stock performance. On the other hand, BYD reported an impressive vehicle sales volume of 403,472 units for June, marking a 5.46% increase from the 382,585 units sold in the same month last year. Deutsche Bank highlighted that BYD's sales volume for the second quarter rose significantly, soaring 58% from the previous quarter to reach 1.1 million units. The bank projected that BYD's quarterly net profit could increase by 145% quarter-over-quarter, forecasting it to hit RMB 10 billion in the second quarter. The strong performance of both companies underscores the growing momentum within the electric vehicle sector in China, as they continue to capture market share and expand their delivery capabilities.