BYD's new European strategy pays off amidst fierce competition
The Chinese automotive giant BYD has thoroughly changed its marketing strategy in Europe after initial setbacks, such as an inadequate dealership network and delays in offering plug-in hybrid vehicles, Reuters reported, noting the increase in sales of the Chinese company.
Reuters, citing six current and former managers of the Chinese electric vehicle (EV) manufacturer BYD, highlighted that the company quickly responded to mistakes by significantly expanding its dealership network and offering attractive salary packages to recruit managers from European corporations, especially from Stellantis.
The Chinese company announced that plug-in hybrids will be a key element of its European strategy. BYD's advisor for Europe, Alfredo Altavilla, persuaded the company's founder and president, Wang Chuanfu, that a strategy based solely on EVs would be difficult to accept in many European countries.
Despite initial challenges, the first signs of the new strategy are promising, Reuters noted. BYD's sales in Europe, including the United Kingdom, have more than tripled in the first quarter of 2025. During that period, 37,000 vehicles were sold in the European market.
BYD is facing strong competition from other Chinese car manufacturers who are also striving to expand in Europe. The pressure to increase sales abroad stems from the price war in China's domestic market.
EU countries as main recipients of cars from China
China is the largest producer of electric vehicles in the world, and its exports increased by 70 percent in 2023, reaching a value of 34.1 billion dollars. European Union countries are key recipients of these cars and account for 40 percent of Chinese exports in this category.
The European Commission decided to impose individual tariffs on three Chinese companies under anti-dumping proceedings: BYD (17.4 percent), Geely (20 percent), and SAIC (38.1 percent). Other companies manufacturing electric vehicles in China that cooperated with the EC during the investigation will be subject to an average rate of 21 percent. This also applies to European companies manufacturing in China and exporting to the EU.
