BYD, the world’s second best-selling electric car manufacturer, is set to launch three new plug-in hybrids (PHEVs) and three electric cars in Europe next year. This move comes as the company aims to expand its product portfolio and increase its market share in the face of declining EV demand and import tariffs. BYD’s European lineup currently consists mostly of pure-electric vehicles, but the company has recognized the importance of PHEVs as a bridge to full electrification for consumers who may be hesitant to switch to electric cars due to range anxiety.
Stella Li, the president of BYD, believes that PHEVs play a “very important role” in sustaining the company’s growth. She emphasizes that PHEVs offer a solution for people who want to try electric cars but are concerned about range anxiety. This trend is particularly prevalent in China, where PHEVs and range-extender vehicles (REVs) are more popular than pure EVs. Li states that in China, more than 50% of new-energy vehicle sales are PHEVs, and many people use them as their first experience with EVs before eventually transitioning to a fully electric car.
However, Li points out that this phenomenon is not exclusive to China. In Spain, for example, 60-70% of BYD’s sales are for the Seal U DM-i PHEV, which is the company’s “global sales champion.” The flexibility and reduced running costs of PHEVs make them an attractive option for consumers. As Li explains, once people realize the savings offered by PHEVs and are educated about their benefits, the number of new-energy vehicles on the road will see solid growth.
While BYD has not yet confirmed which PHEVs it will bring to Europe next year, it currently sells PHEV versions of the Seal 06 and Seal 07 saloons, as well as the Song-L crossover, in China. The company also plans to launch its Fangchengbao range-extender 4x4s in mainland Europe and the UK in the near future.
Diversifying its powertrain offerings in Europe is crucial for BYD to mitigate the impact of import tariffs imposed on its Chinese-built pure-electric cars by the EU Commission. BYD is also working to establish European factories to avoid these tariffs entirely. The company is set to begin production at its new factory in Hungary by the end of 2025 and plans to open a separate facility in Turkey shortly after. This move would make BYD the first Chinese car brand to have its own European factory.
BYD’s president, Stella Li, emphasizes the company’s commitment to becoming a local and European brand. She states that BYD will produce cars locally and conduct research and development in Europe. The company aims to become a European company within the next two years.
In conclusion, BYD’s decision to launch new PHEVs and electric cars in Europe reflects its strategy to expand its product portfolio and increase market share. By offering PHEVs as a bridge to full electrification, BYD aims to address consumer concerns about range anxiety and encourage a transition to electric vehicles. Additionally, the company’s plans to establish European factories demonstrate its commitment to localization and becoming a European brand.
