Chinese EV maker BYD re-evaluates European strategy in face of resistance
Executives speaking anonymously revealed that BYD is rethinking how it approaches the European market in the wake of the continent’s resistance to its technology.
China’s leading electric vehicle (EV) manufacturer, BYD, says that it’s had no choice but to overhaul its European strategy due to a failure to sign up enough dealers and offer hybrid products to appeal to the public.
Despite the manufacturer’s success in Asia, Germany BYD sold just 218 cars in August 2024 and 240 the previous month. In total, it sold only 83,000 vehicles in Europe, compared to the 3.7 million vehicles sold by its rival, the Volkswagen Group.
Moves have already been made to turn around the struggling company’s fortunes in the European market. In December 2024, BYD announced that it would offer hybrids to European customers for the first time, mentioning that plug-in hybrids would be a core part of its strategy going forward.
It’s also been actively trying to entice executives from other European manufacturers to join its network. Thus far, BYD has racked up some big wins, with the former UK chief of Stellantis, Maria Grazia Davino, joining the company.
Leadership changes at the top of the company in Europe aim to give the manufacturer greater insights into the European market. Another name that has joined the company as a special adviser is Alfredo Altavilla, a former executive for Fiat-Chrysler.
Altavilla said at the time, “It would be stupid to go against the market. It’s pretty clear where the market is going in Europe, especially in Southern Europe.”
China’s success in the EV and hybrid markets thus far has acted as a significant pull for many executives to jump ship. However, the European market has struggled to gain purchase among the public, with EV growth well behind the Asia-Pacific market. Nevertheless, BYD continues to wrestle with its market penetration problem, with plug-in hybrids expected to ease the transition toward full electrification.
Additionally, BYD is currently experiencing multiple investigations by the European Union (EU) over its manufacturing network, particularly in Hungary. This all comes against the background of EU tariffs on Chinese-made EVs, which is why BYD has been aggressively attempting to localize production, especially in Germany.
BYD has refused to formally comment on the story that it’s overhauling its strategy, but the news has been revealed under condition of anonymity from several former BYD executives.
