BYD’s Ambitious Plans for the European Electric Vehicle Market

BYD, a prominent Chinese automotive manufacturer, has set a significant target of capturing a 5 percent market share in the European electric vehicle market, even before the commencement of production at its new facility in Hungary. This ambitious objective translates to 70,000 fully electric cars, based on projected 2023 sales figures. When considering plug-in hybrids in the equation, BYD is aiming for a market share of nearly 115,000 vehicles. Despite selling fewer than 16,000 cars in 2023, all of which were fully electric, the company managed to secure a 1.1 percent share of this sector, according to market researcher Dataforce.

While these objectives are indeed challenging, BYD has already demonstrated its capacity to achieve remarkable milestones in the automotive industry. It has surpassed Volkswagen to become China’s largest automaker and has positioned itself as a formidable competitor to Tesla for global leadership in full-electric sales. Michael Shu, the CEO of BYD Europe, elucidated the company’s plans for Europe during an interview at the 2024 Geneva auto show.

BYD initiated its car sales in Europe in 2021, initially focusing on Norway, and successfully marketed 15,644 vehicles in the region last year. Despite CEO Michael Shu expressing satisfaction with these figures, considering it as a promising start for the company, he acknowledged the complexity of penetrating the European market due to the diverse legislations and languages across different countries. Consequently, they aim to enhance their sales activities, yet remain cognizant that it will take time to comprehend the optimal approach toward leveraging various sales channels for private buyers, fleets, leasing companies, and rental car firms.

Regarding production, BYD is aiming to commence operations in Hungary before 2026, with a target capacity of 150,000 vehicles per year, potentially scalable to 300,000. Shu also emphasized the company’s objective of becoming more European-centric rather than merely a Chinese enterprise conducting business in Europe, through the use of local facilities, labour, and supply chains.

When questioned about BYD’s aspirations to establish itself as a premium brand in Europe, Shu articulated that their products are premium, yet competitively priced, making them accessible to a wider customer base. Furthermore, he indicated that BYD is evaluating the market response towards models from the Denza and YangWang brands before deciding on their potential introduction in Europe.

Moreover, Shu addressed the company’s distribution model, expressing a preference for the traditional distribution model over the direct sales agency model that several European automakers are adopting. He also reiterated that there are currently no plans to engage in the price war for electric cars in Europe, with a focus on maintaining stable pricing to avoid unfair price adjustments.

In conclusion, BYD’s plans for Europe are undoubtedly ambitious, yet promising as the company embarks on its journey to establish a formidable presence in the European electric vehicle market. As it expands its operations and production capabilities, BYD aims to emerge as a significant player in the region, offering consumers a diverse range of electric vehicles at affordable prices.