Harmony Shares Rise as BYD Invests $40M in iCar to Boost Global Expansion

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Shares in Harmony Auto Holdings surged up to 13.8 percent today, then sharply declined as investors took profits, after the Chinese luxury car dealer announced that automotive and battery giant BYD is investing $40 million into its subsidiary, iCar Group, to accelerate its international growth.

By the end of the trading session, Harmony Auto’s stock closed down 12 percent at HKD2.10 (about $0.20), after reaching a high of HKD2.72 earlier in the day. The stock has almost quadrupled in value so far this year.

BYD is set to purchase roughly 10 percent of newly issued shares in iCar, a subsidiary responsible for overseas sales and after-sales services for BYD, according to Harmony Auto. The investment will be paid in cash and used for general operational needs.

The company owns a 55 percent stake in iCar, while Epower Global, a firm controlled by Harmony Auto’s chairman Feng Changge, holds 45 percent. After the share issuance, their holdings will be diluted to 49.5 percent and 40.5 percent, respectively. Despite the dilution, iCar will continue to be a subsidiary of Harmony Auto and will remain consolidated in its financial reports.

This partnership underscores Harmony Auto’s strategic commitment to working with BYD over the long term. It aims to boost BYD’s global sales and also improve Harmony Auto’s capital structure, enhancing its competitive edge.

Harmony Auto distributes more than ten luxury brands, including BMW, Ferrari, and Lexus. In 2023, the company shifted its focus toward helping Chinese EV manufacturers expand internationally, forming strategic alliances with BYD in Shenzhen and GAC Group.

Over the past two years, Harmony Auto has opened 100 BYD dealerships across 20 countries and regions, such as Hong Kong, the UK, France, Switzerland, Japan, Australia, Malaysia, Indonesia, the Philippines, and Singapore, according to company reports.

BYD has been the world’s leading seller of new energy vehicles over the past three years and is anticipated to maintain that position this year. In the first half, sales increased by 33 percent year-over-year to 2.1 million units, with overseas shipments soaring by 132 percent to more than 470,000 vehicles.