BYD Co. is doubling down on Europe as it faces stiff competition and a bruising price war in China.
The electric vehicle giant is adding new models, building out retail presence, and forging supplier partnerships to gain ground against entrenched European automakers.
Europe push with models and showrooms
Executive Vice President Stella Li said at the Munich auto show on Monday that BYD will have more than 1,000 stores in 32 countries across Europe by the end of 2025.
The carmaker now offers 13 models in the region, up from six two years ago.
Its latest European addition, the Seal 6 DM-i Touring plug-in hybrid, boasts a combined gasoline and battery range of 1,350 kilometers (839 miles).
At home, BYD and peers such as Xpeng and Leapmotor are grappling with a cutthroat price war that has slashed margins.
Navigating EU Tariffs
The European Union has introduced tariffs on electric vehicles imported from China, but BYD and other Chinese manufacturers continue to grow their presence.
BYD has diversified its offerings with more hybrid and combustion models that do not fall under the higher duties, while also building sales partnerships and pledging to set up production locally.
Li said the Dolphin Surf will be the first model produced in Europe.
⭐BYD DOLPHIN SURF scores maximum five-star Euro NCAP safety rating️ ⭐️
Safety, innovation, and accessibility: all in one.
Production of the fully electric small car is expected to begin before the end of the year at a new factory in Szeged, southern Hungary.
By manufacturing the car within Europe, BYD will avoid the 27% tariff now applied to battery-electric vehicles imported from China, up from the previous 10%.
Chinese automakers nearly doubled their European market share to 4.8% between January and July 2025 compared with a year earlier, according to JATO Dynamics.
BYD’s European sales jumped 290% to over 84,000 vehicles through July, even as it faces slowing demand in China.
McKinsey projects Chinese brands could eventually capture a share comparable to Japanese (14%) and Korean (9%) manufacturers
Showdown in Munich
This year’s IAA Mobility show in Munich underscores the escalating competition.
European incumbents Volkswagen, Mercedes-Benz, BMW and Renault are unveiling their own counterstrategies as Chinese rivals gain traction.
Industry executives warn the European market could become as unforgiving as China’s, with cost-cutting and efficiency battles looming.
With sales in China under pressure and production slowing, the company is increasingly dependent on accelerating its European growth.
Meanwhile, Mercedes-Benz, BMW and Renault are preparing competitive responses as they defend their positions in the European market.
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