Chinese electric vehicle manufacturer BYD is making a bold move in the European market, with plans to price its EVs in Germany between €25,000 and €30,000. This aggressive pricing strategy aims to challenge established European automakers on their home turf.
Stella Li, Executive Vice President of BYD Co., believes the company can gain consumer trust in less than six months. This crucial period will give EU customers enough time to become familiar with BYD’s product offerings and advantages.
Chinese EV Producers Threaten European Car Makers on Their Turf
BYD’s entry into the European market comes at a time when Chinese EV producers are increasingly threatening the dominance of major European car manufacturers.
In Germany, a country with a rich automotive history, BYD recently announced the acquisition of its German distributor, Hedin Electric Mobility, to gain more control over its sales operations in one of Europe’s most important car markets.
This move is key for BYD as it prepares to lock horns with established German brands such as Volkswagen AG, Audi and the Mercedes-Benz Group.
However, Chinese EV manufacturers face a small hurdle.
EU tariffs on EV imports from China create lose-lose situation pic.twitter.com/kq2bpgRNXu
— CGTN (@CGTNOfficial) October 6, 2024
EU countries voted to impose tariffs of up to 45% on EVs made in China. The decision, made after intense debate, reflects the increasing concern among European carmakers about losing market share.
Additionally, the economic downturn and rising energy costs have led to slower EV sales growth, making it more difficult for these companies to remain price-competitive in the European market.
Despite these obstacles, BYD continues to invest heavily in expanding its global operations. The EV maker will press on with affordable EVs in Germany and is building new plants in Turkey and Hungary. The central European country will serve as its manufacturing base in Europe.
Li explained that the European Union (EU) is unlikely to make further compromises in the face of rising competition. She believes that European automakers, backed by a powerful lobbying effort, have been slowed down due to inconsistencies in EV policies in Europe.
#BYD is now manufacturing 1 million electric cars (NEV) every TWO MONTHS!#China is the undisputed champion of implementing ideas at scale with speed.
(NEV is EV + Plug-in hybrid) pic.twitter.com/AtAoN6BXNX
— S.L. Kanthan (@Kanthan2030) September 27, 2024
This has weakened their ability to innovate and compete. In contrast, foreign brands like BYD have become highly competitive and have developed the ability to quickly adapt to new markets by producing affordable high-quality EVs.