BYD
Big declines for Tesla, Toyota and several Stellantis brands pulled down overall Europe demand, while Chinese automakers and electric vehicles made strong gains.
The Chinese automaker wants a bigger piece of Europe’s largest segment, small SUVs, which is poised for big growth for electric variants as VW and Renault prepare to launch more affordable models.
Consumer complaints included criticism that BYD had released a newer Seal model with technology upgrades at the same price just weeks after a customer bought an older version
BYD has struggled to make an impact in Europe but its ambitions are bold. Local production and a wider scope of offerings will give the Chinese automaker a major boost.
The BYD Atto 2 will start at less than €30,000 in Europe. EVs and PHEVs have not yet made a major mark in the small SUV segment, but a number of low-cost entrants could change that this year.
The 12 percent decline was the first since September and the biggest drop in nearly a year, and it comes as bruising discounts and price cuts roll on.
BYD’s new factories in Hungary and Turkey will have a combined annual capacity of 500,000 units. The Chinese automaker is tapping Italian suppliers for parts because they are highly skilled and have contracts with German premium brands.
Automakers that miss their EU emissions reduction targets this year face heavy fines but they can buy credits from EV market leaders.
By bringing smart driving features to BYD’s more affordable, bestselling Dynasty and Ocean series of models, sales of which totaled nearly 4 million in 2024, the company could cut hardware and software costs through economies of scale.
Competition is intense for every electric vehicle sale in the region, AlixPartners said, but a wave of more affordable EVs is expected to provide a lift this year.