BYD, a prominent Chinese electric vehicle manufacturer, is gaining traction in Europe and recently unveiled its new Sea Lion 7, competing with the Tesla Model Y. Despite selling its nine-millionth electrified car, BYD’s European sales have been underwhelming. To enhance its presence, the company plans to significantly expand its dealership network and has purchased its German distributor. Additionally, BYD aims to overcome challenges posed by import taxes and develop models specifically for the European market.
Are you familiar with BYD? If you’re following updates in the electric vehicle sector, you likely are. This Chinese manufacturer is making significant strides in the European market.
A Comprehensive Strategy for Europe
Based in Shenzhen, BYD is now the second-largest seller of zero-emission vehicles globally and has recently topped the sales charts in China. Notably, the company has celebrated the sale of its nine-millionth electrified vehicle, but it is eager to expand further. At the recent Mondial de l’Auto de Paris, the automaker showcased its new electric model, the Sea Lion 7, which competes directly with the Tesla Model Y. This event also provided insights into BYD’s strategic vision for Europe.
BYD officially entered the European market last year, and initial performance has been promising. However, the company’s vice president, Stella Li, expressed some dissatisfaction with the current sales figures during an interview with Automotive News Europe. She noted, “we’re not satisfied with the results. You can expect significant changes from BYD in the coming months.” This statement sets clear expectations for the company’s strategy going forward.
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In reality, BYD is exploring multiple development avenues. Since its inception in 2003, the company has exclusively focused on hybrid and electric models. They aim to “double or even triple” their dealership network across Europe by the end of next year, particularly in Germany, targeting a total of 120 dealerships by 2025, up from the current 26.
Expanding Dealerships and More
To facilitate this growth, BYD has recently acquired its German distributor, enhancing its sales potential. Stella Li mentioned, “I believe we didn’t establish the infrastructure adequately. Now, we are correcting that and actively building our network. We need additional service points, which we’ve already begun to implement, along with more dealerships.” Success in Germany is essential for BYD’s overall strategy.
BYD aims to capture a 5% market share in Germany, despite current market vulnerabilities. This situation is partly attributed to the conservative nature of European consumers, as noted by Li. Additionally, the removal of ecological bonuses has negatively impacted sales, especially given the increasing customs duties faced by Chinese manufacturers.
This scenario may change with the upcoming establishment of production facilities in Hungary and Turkey, set to commence operations in 2025 and 2026, respectively. Stella Li views import taxes as a short-term obstacle that she finds unfair, as they restrict access to electric vehicles for consumers and consequently inflate final prices. However, she believes that “you’ll see many BYD vehicles on the roads of Germany” due to this new strategy, which may also extend to France.
Furthermore, BYD has plans for tailored offerings in the European market. In a meeting with Stella Li in July 2024, she unveiled a roadmap that includes 10 planned models, with 3 specifically designed for Europe, including a compact city car likely based on the revamped Seagull. Clearly, BYD’s presence in the market is just beginning, and they have much more to unveil.