The USA is already demanding high punitive tariffs on Chinese electric cars, and the EU is also planning a similar step. Now the Chinese car company BYD has announced that it wants to produce small cars in Europe from 2025.
The Chinese car manufacturer BYD is putting small cars at the center of its planned sales offensive in the European market. “We plan to launch the B segment next year,” announced Penny Peng, BYD’s head of marketing in Europe, in an interview with the business magazine “Capital”.
In the automotive industry, the B segment describes vehicles the size of the VW Polo, T-Roc and Taigo, Opel Corsa or Renault Clio models. According to the manager, the electric car specialist BYD wants to produce the planned vehicle in BYD’s first EU factory in Hungary. Peng said they want to start production there in the second half of 2025.
There are currently great concerns in Europe about Chinese manufacturers entering the market. EU Commission President Ursula von der Leyen is examining import duties for Chinese electric cars; the USA has already decided on them recently. However, if BYD builds the car in Europe, it would not be affected by these tariffs. “We will then become a European manufacturer,” said Peng. The Chinese company is the world’s largest manufacturer of electrified vehicles ahead of Tesla and at the same time the market leader in the Chinese car market by a significant margin.
The BYD Seagull model, a small car that costs the equivalent of less than 10,000 euros in China, is causing a particular sensation. However, according to the manager, a significantly modified version of the car that is adapted to European needs and regulations should be launched in Europe. Because of the development work and approval processes, Peng did not want to commit to a specific sales start. But it is clear that the car in Europe will be significantly more expensive than the Chinese offer, said Peng. Nevertheless, BYD will play its role as “price leader”.
So far, Europe’s car manufacturers hardly have any small electric cars on offer. VW is planning a model for 2026 that will be available for 25,000 euros. The competitor Stellantis is already offering a car, the Citroen e-C3, for 23,000 euros, and the planned Renault 5 is said to be at a similar price level. The BYD competitor vehicle, Peng indicated, will cost significantly less.
BYD already sells cars in Europe, but so far with modest success. In April, for example, according to data from the Federal Motor Vehicle Authority, only 183 BYDs were registered in Germany. However, the BYD manager was calm about the weak sales figures. “We are planning our strategy for the long term.” She hopes that the European Football Championship in Germany in the summer will provide momentum for the brand, where BYD is the main sponsor – replacing VW in this role. “This can give a boost to brand awareness,” says Peng.