BYD's revamped European strategy triples sales amid tariffs
The Chinese automotive giant BYD has significantly altered its marketing strategy in Europe following initial setbacks, such as an inadequate dealership network and delays in offering plug-in hybrid vehicles, according to a report by Reuters that highlighted the increase in sales for the Chinese company.
Reuters, citing six current and former managers of the Chinese electric vehicle (EV) manufacturer BYD, noted that the company quickly addressed these issues by significantly expanding its dealership network and offering attractive remuneration packages to recruit managers from European firms, particularly from Stellantis.
The company from China announced that plug-in hybrids will be a central component of their European strategy. BYD's advisor for Europe, Alfredo Altavilla, persuaded the founder and chairman of the company, Wang Chuanfu, that a strategy focused solely on EVs might face challenges in various European countries.
Despite the setbacks, initial signs of the new strategy are promising, Reuters observed. BYD's sales in Europe, including the UK, more than tripled in the first quarter of 2025. During this period, 37,000 vehicles were sold in the European market.
BYD faces strong competition from other Chinese car manufacturers, who are also aiming to expand in Europe. The impetus to boost overseas sales arises from a price war in the domestic Chinese market.
EU countries as the main importers of cars from China
China is the largest producer of electric vehicles worldwide, and its exports increased by 70% in 2023, reaching a value of 34.1 billion dollars. EU countries are pivotal importers of these vehicles, accounting for 40% of Chinese exports in this sector.
The European Commission has decided to impose specific tariffs on three Chinese companies involved in an anti-dumping investigation: BYD (17.4%), Geely (20%), and SAIC (38.1%). Other manufacturers of electric vehicles in China that cooperated with the EC during the investigation will be subject to an average tariff of 21%. This also applies to European companies producing in China and exporting to the EU.
