BYD targets Europe for small car production by 2025.
BYD, a Chinese car manufacturer, plans to produce small cars in Europe from next year, possibly coinciding with the European Football Championship. Currently, there are few BYDs on German roads, but the company aims to change that.
BYD is targeting the B-segment of the European market, which comprises vehicles similar in size to the VW Polo, T-Roc and Taigo, Opel Corsa, or Renault Clio models. The company's Head of Marketing in Europe, Penny Peng, shared this information in an interview with the business magazine "Capital." BYD intends to manufacture these vehicles at their first EU factory in Hungary, with production set to start in the second half of 2025.
There are concerns in Europe about Chinese manufacturers entering the market, with EU Commission President Ursula von der Leyen considering import duties for Chinese e-cars, and the USA having already imposed such duties. However, if BYD builds the cars in Europe, they would be exempt from these tariffs. "We will then become a European manufacturer," said Peng. As the world's largest manufacturer of electrified vehicles and the market leader in the Chinese car market, BYD has a strong presence in the electric vehicle market.
The Seagull model, a small car priced at less than 10,000 euros in China, has generated significant interest. Peng confirmed that BYD will be launching a significantly modified version of this car in Europe, adapted to European requirements and regulations. However, she did not provide a specific sales launch date due to development work and approval processes. However, she did mention that the price in Europe will be more expensive than in China due to these factors. "We will play our role as 'price leader'," she added.
European car manufacturers currently offer few small electric cars, with VW planning a model for 25,000 euros in 2026, and Stellantis having the Citroen e-C3 at 23,000 euros. The planned Renault 5 is also expected to be at a similar price level. Peng hinted that the BYD competitor vehicle will cost significantly less.
Despite modest sales figures in Europe, BYD is optimistic about its future. In April, only 183 BYDs were registered in Germany, but Peng said, "We are planning our strategy for the long term." She hopes that the European Football Championships in Germany this summer, where BYD is the main sponsor, will help boost the brand's awareness: "That could give the brand a boost."
This text first appeared on capital.de
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BYD's entry into the B-segment of the European market with their electric cars in 2025, manufactured at their new factory in Hungary, could challenge the pricing strategies of existing European manufacturers like VW and Stellantis.
By establishing a production base in Europe, BYD, the world's largest manufacturer of electrified vehicles, aims to bypass any potential import duties on their electric cars, further reinforcing their commitment to electromobility in Europe.
Source: www.ntv.de
