China’s largest carmaker, BYD, has announced plans to produce electric vehicles in Europe within the next three years as it looks to bypass tariffs and expand its presence in the competitive European market.
Speaking at the IAA Mobility show in Munich, Stella Li, the company’s executive vice president, said the strategy will help BYD become “more European in production.”
Building Local Capacity
BYD is currently constructing a factory in Hungary that is expected to begin production this year.
Another facility in Turkey is scheduled to come online in 2026.
The move comes after the European Union imposed tariffs on Chinese-made EVs, arguing that subsidies from Beijing gave Chinese automakers an unfair advantage.
Asked how soon BYD could meet European demand solely from local plants, Li responded: “Give us like two to three years.”
Plug-In Hybrids to Lead Sales
While BYD initially entered Europe with fully electric cars, it later introduced plug-in hybrids (PHEVs), which have gained significant traction.
In the United Kingdom, for example, BYD’s top-selling model is now a PHEV.
Li said the company will launch another three to four hybrid models within six months and expects them to dominate European sales.
“In the next one or two years, our plug-in hybrids will be dominating sales in Europe,” she predicted.
The company also plans to bring its luxury Yangwang brand to Europe in 2027, signaling its ambitions to expand into higher-end markets.
Balancing Growth and Competition
BYD sold 4.2 million vehicles globally in 2024, a tenfold increase from 2019.
However, in recent months it has faced falling sales and production slowdowns in China.
Li described this as a normal adjustment after years of rapid growth.
“BYD is still the number one in China, we’re happy with the results,” she said.
“Maybe in the past one or two years our share was too high as number one, so now we go back to living normal.”
Despite recent challenges, BYD’s overall sales remain up by double digits this year.
Li added that the company’s future growth will be increasingly driven by international markets.
Leadership and Succession
Under new Chinese government policies, Chairman Wang Chuanfu may be required to retire in early 2027 when he turns 60.
Asked about succession planning, Li declined to provide details, saying: “Let’s keep it a secret.”
With its European expansion, strong sales base, and upcoming luxury push, BYD appears set to remain a key player in the global EV market, even as competition intensifies from both European incumbents and other Chinese brands.