Chinese Giant Sets Sights on European Market with Ambitious Plans. Can They Pull It Off?

While BYD is a colossus in China, few realize that this powerhouse is setting its sights on Europe. In just two years, BYD plans to sell as many cars in Europe as Nissan. They’re already building a factory in Hungary and another in Turkey, aiming to supply the continent by the end of 2026.

Skeptical about BYD’s target of 300,000 cars per year? So were we. TopGear.com caught up with Stella Li, global executive vice president and head of operations in the Americas and Europe, to get some answers.

How does BYD plan to grow so rapidly? “Build the brand. Be trusted. Take solid, long-term steps,” Li says. Her approach is straightforward.

As part of their brand-building efforts, BYD made a splash at the Goodwood Festival of Speed with a massive pavilion. They also sponsored the soccer Euros, securing the deal at a bargain price after another sponsor pulled out. According to Li, once people become aware of BYD, they’re more likely to give their cars a try. “60 percent of people who try our cars buy one,” she claims.

BYD is quick to adapt. Their cars are continually refined based on feedback from European drivers, improving with each shipment. Initially, BYD referred to their cars as “NEVs” (New Energy Vehicles), a term unfamiliar to Europeans. They’ve since adjusted their messaging. While their initial focus was on electric vehicles, Li notes that Europeans currently prefer their long-range plug-in hybrids, known as DM-i.

“We will focus on DM-i,” Li says, adding that more models with this drivetrain will be introduced next year, following the Seal U DM-i. The plant in Hungary can produce at least eight different models on the same production line, a flexibility few manufacturers can match.

Our conversation took place just as the EU imposed heavy tariffs on Chinese cars. BYD’s rate is 27.4 percent, lower than other brands like state-owned MG, due to less perceived subsidization by the Chinese government.

Unsurprisingly, Li is not impressed by the tariffs. “Tariffs hurt EU consumers by increasing car prices. That’s not right.” When asked if she thinks the tariffs will hold or if the EU will back down after a trade war, she declined to comment on the political situation.

“We aim to be a largely locally-based manufacturer, building our top-selling models in Turkey and Hungary. We started investing in Hungary two years ago, before the tariff discussions. We have a five-year plan for localization. We’ll produce battery packs in the EU and eventually the cells, but we have no clear timeline yet.”

However, until those plants are operational, BYD’s growth could be impacted by tariffs, even if they launch four to six new models in the next two years as Li expects. If the UK doesn’t follow the EU’s lead on tariffs – the new government is still considering its stance – Britain could become a key market for BYD.

Think selling 300,000 cars in Europe is ambitious? BYD is also planning to launch a premium brand. This market has seen the downfall of Infiniti, Cadillac, Lancia, and Saab. Even Jaguar is currently off the radar.

At Goodwood, BYD showcased two new brands: Yangwang, with its U8 super-SUV and U9 supercar, and Denza’s flashy MPV. “We need a stepping stone for those cars,” Li says, indicating that both brands will launch in the UK within two years.

The premium market is notoriously brand-loyal, and established players are adept at countering new competitors. “People are more open to new brands in EVs and PHEVs. They focus on the technology. You need to build the customer experience step by step.” Li passionately believes in her top-end cars. “You have to be ten times better than the rivals. The U8 can swim. It’s the only one that can do that, and I’ve tried it. It’s a BYD innovation – fun, cool, and life-saving.”

“BYD is an engineering company. We have 110,000 engineers and file 32 patents a day. If a petrol car is a 2G phone, we’re 5G.”

Whether you see Li’s ambitious growth plan for BYD in Europe as realistic or wildly optimistic, we’ll only have to wait two years to find out.