After soaring success at home, Chinese electric vehicle (EV) powerhouse BYD has run into serious speed bumps in Europe—and is now scrambling to get back on track. With bold ambitions to dominate the continent’s EV scene, BYD initially misfired due to critical strategic missteps, insiders reveal.
What Went Wrong?
Despite strong momentum in China, BYD’s European launch was anything but smooth. The company expanded too quickly without fully understanding local market dynamics. Several former and current executives told Reuters that the automaker lacked experienced local leadership, didn’t prioritize hybrid models, and built a dealer network that was too limited and too urban-focused.
The biggest mistake? Treating Europe as a single, homogenous market. “They assumed Europe was like China or the U.S. But each country here is a frog jumping in its own direction,” said a former BYD executive.
Course Correction in Motion
In response, BYD has been aggressively reworking its European strategy. It hired key industry veterans, many from Stellantis, offering them top-tier pay and room to grow. One major hire was Alfredo Altavilla, a seasoned former Fiat-Chrysler executive, who advised that Europe needs a mix of EVs and plug-in hybrids to appeal to its diverse car-buying public.
Altavilla’s message resonated. BYD founder Wang Chuanfu quickly pushed engineers to ensure all new European models would be available in both electric and hybrid variants.
BYD has also expanded its dealership network. In Germany alone—the region’s largest auto market—the company plans to increase dealerships from just 27 to 120. Germany’s market is no easy ride: BYD sold under 2,900 vehicles there last year, a far cry from its targets.
Leadership Shake-Up and Renewed Vision
To spearhead its revival, BYD appointed top executive Stella Li to oversee Europe, replacing Michael Shu. Shu had projected a 5% market share before the launch of BYD’s Hungary plant in 2025, but BYD ended 2024 with only 2.8% and just 57,000 units sold.
Yet there are signs of progress. In Q1 2025, BYD tripled European sales year-over-year, hitting 37,000 units. The company’s ability to pivot fast—something it mastered in China—is beginning to pay off.
At the 2025 Shanghai Auto Show, BYD showcased a vast range of models across different price tiers. From affordable options like the Seal 06 to luxury SUVs like the Yangwang U8L, it’s clear the brand is pulling out all the stops.
Why Europe Still Matters
Europe isn’t just another foreign market—it’s a critical proving ground. Chinese rivals like Geely, Xpeng, and Changan are also eyeing the continent, and BYD needs a solid foothold to maintain global momentum. According to Tim Albertsen, CEO of leasing firm Ayvens, “What works in China doesn’t always work in Europe. But BYD is taking the right steps.”
While the road ahead remains bumpy, BYD’s reboot could mark the start of a European comeback story worth watching.
