BYD has gained ground in the European market with low-priced EVs such as the Seal U DM-I, which is perceived to be relatively lower priced compared to the European models from Volkswagen and Peugeot. The Chinese EV maker has also revealed plans to localize all European production in three years.
The Chinese EV maker expanded its market share in fully electric and plug-in hybrids to over 10% in July, more than double its European average and Tesla’s 3.3%.
The Chinese EV maker’s overall car market in Spain also rose from 0.3% a year ago to 1.8% in August, surpassing renowned brands such as Stellantis, Jeep, and Volvo. The Seal U has gained popularity in the country this year with its plug-in hybrid feature.
BYD’s dealership network quadruples to nearly 100 in Spain
Reuters cited one buyer named Javier Hernandez who went car shopping in Barcelona. Hernandez was swayed by the value offered by the Chinese EV maker and opted for the Seal U DM-I, plug-in hybrid. The model sold at around €30,000, undercutting the European models by nearly €10,000. Javier revealed in his statement that the value for money was better.
BYD has gained ground in Spain due to its relatively low prices and quick delivery times. The Chinese firm’s dealership network has also grown to nearly 100 dealers from just 25 last year, mainly due to aggressive marketing and discounts, as revealed by Alberto De Aza, BYD’s country manager for Spain and Portugal.
Makus Hauput, interim CEO of Volkswagen, acknowledged the competition from Chinese automakers, saying they are mounting pressure on them. Most renowned car makers in the European market, including Volkswagen and Audi, have lost dealerships over the past decade, falling from 2,164 to 1,641 in 2024. Faconauto data also revealed that Volkswagen and Audi dealership outlets declined by 40%.
The Chinese EV maker’s sales in Spain rose to over 14,000 cars in July, which is over 675%, alongside SAIC-owned MG, which realized 58% upside, and Chery’s Omoda, which moved more than double the previous year.
BYD to manufacture all European cars locally within three years
Some analysts have noted that the Chinese EV maker’s strong presence in Spain is due to the absence of a strong national automotive champion. Felipe Munoz of JATO Dynamics highlighted the Seat model acquired by Volkswagen, losing its Spanish identity. Seat’s sales rose by 4% this year, trailing the Spanish market’s 15% growth, while its premium brand Cupra gained 17%.
BYD revealed that it will manufacture all EU region vehicles locally within three years. A plant construction is ongoing in Hungary, while De Sza suggested that Spain could also be another candidate for production expansion. He cited Spain’s industrial infrastructure and relatively cheap electricity.
Spain’s EV market has also seen challenges, with total sales for fully electric and plug-in hybrid models falling short at 21% against the European average of 27%. That has, however, grown from just 10 % last year. Some analysts cited insufficient charging infrastructure as the biggest challenge, with Spain hosting roughly 50,000 charging stations, just a third of the Netherlands. BYD also lags behind market giants such as Toyota, Renault, and Volkswagen in overall sales, despite the rising competition following its targeted cheaper alternatives.
BYD has tapped into the limited infrastructure, focusing on hybrids and plug-in hybrids. Reuters interviewed Juan Gonzalez, a 56-year-old IT head who chose a plug-in hybrid over a fully electric vehicle with solar panels due to concerns over long-distance driving. He said that if you ran out of battery and had to tackle a mountain pass, you would be in trouble.
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Source: https://www.cryptopolitan.com/byd-gains-ground-in-spain/
