BYD Offers Twice As Many European Models To Boost Sales

BYD Co. is reinforcing its European expansion with new models and showrooms amid a bruising price war at home in China.

The carmaker is in talks with hundreds of local suppliers and will have more than 1,000 stores in 32 countries across Europe by the end of the year, Executive Vice President Stella Li said Monday at the Munich auto show. It’s now offering 13 models in the region, up from six two years ago.

BYD’s most recent European addition is the Seal 6 DM-i Touring, a plug-in hybrid station wagon with a combined gasoline and battery range of 1,350 kilometers (839 miles).

BYD, Xpeng Inc. and Zhejiang Leapmotor Technology Co. are among Chinese carmakers using this week’s event in Germany to show off their lineups as they try to extend market-share gains made in Europe in recent years. Their push is intensifying as an EV price war rages at home.

The European Union has introduced tariffs on electric vehicles imported from China, but that’s not stopped the rise of BYD and its peers. They’ve added more hybrid and combustion models that don’t trigger the duties, are forming local sales partnerships and are pledging to set up production in the region. That’s a threat to the likes of Volkswagen AG and Stellantis NV, which are cutting costs to defend margins in a stagnant European auto market.

Volkswagen is answering with efforts to offer more affordable vehicles, including an electric Polo that’s expected to be priced below €25,000 ($29,330) when it goes on sale next year, and a battery-powered version of its popular T-Cross sport utility vehicle. It also showed off new models from its cheaper Skoda brand.

“Our ambition is provide technology for the people and that’s what we are doing now with the entry-level electric cars,” Chief Executive Officer Oliver Blume said Monday in an interview with Bloomberg Television.

Europe’s biggest automaker also is navigating US President Donald Trump’s trade moves. Blume said the EU-US agreement for 15% duties creates planning security but still remains a burden for the group, which ships Audi and Porsche vehicles into the country.

The carmaker remains in talks with Washington to secure a tariff offset agreement in return for its investments in the country, Blume said, adding that he’s hoping for a “quick solution” in the coming weeks.

With the US market practically closed to Chinese players due to trade hurdles, these brands are making moves to lay down more roots in Europe.

Leapmotor plans to double sales in the region next year to as many as 120,000 units, then double that again in 2027, Chairman Zhu Jiangming said Monday in Munich. Local production in Spain will start in the second half of next year, he added.

XPeng plans to bring its more affordable Mona sub-brand to Europe next year, Chairman and CEO He Xiaopeng told reporters at the show. The move signals a major push beyond more premium vehicles and piles further pressure on European manufacturers.

The first Mona model, the entry-level M03 sedan, has become a key driver of Xpeng’s rapid growth, accounting for about 40% of the carmaker’s monthly sales.