Chinese electric-vehicle leader BYD Co. Ltd. this week confirmed it will deepen its technology partnership with U.S. oil major Exxon Mobil. Under the renewed agreement, Exxon Mobil’s research teams in Texas and New Jersey will work alongside BYD’s engineers in Shenzhen to optimize hybrid powertrain components, focusing on next-generation battery materials and energy management software. The companies plan to co-develop a novel battery additive that preliminary tests suggest could improve cycle life by up to 15% under high-temperature operating conditions. BYD said the joint R&D program will run through 2027, involve more than 50 full-time researchers and cover five core hybrid system modules, including power conversion, thermal management and battery cell chemistry. Investors will be watching for pilot-production results in mid-2026, which may provide insights into BYD’s roadmap for expanding hybrid offerings in Europe and North America.

Following India’s agreement with the European Union to reduce passenger-car import duties from 110% to 40%, BYD reported that its India division saw unit sales jump 80% year-over-year in 2025, reaching 24,000 vehicles. While EV imports will continue to face the full 110% duty for the next five years, BYD executives say they are evaluating local assembly options to leverage the new EU tariff structure for right-hand-drive models sourced from its Thailand plant. The company has already tendered bids to set up a knock-down kit line in Tamil Nadu, which could bring import costs down by an estimated 30%, based on current logistics and component-import tariffs. Market analysts expect this strategy could boost BYD’s Indian market share from 4% last year to over 10% by 2027, provided regulatory approvals are secured by Q4 2026.