Chinese electric vehicle (EV) manufacturer BYD is intensifying its efforts in Europe, introducing its latest electric hatchback, the Dolphin Surf.

The vehicle was launched at an event in Rome on May 23, 2025 which included a drone light show above the Olympic Stadium.

BYD has surpassed Tesla in European EV sales and is broadening its presence in the region through competitive pricing and a diverse lineup of hybrid and electric vehicles.

In the first four months of 2025, BYD’s European sales nearly quadrupled compared to the same period in 2024, according to automotive research firm Dataforce.

Traditional automakers such as Volkswagen and Stellantis, along with Tesla, are facing challenges like changing consumer preferences and regulatory issues.

BYD aims to take advantage of these trends by focusing on affordability and practicality.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ BYD’s EV success built on 25+ years of battery innovation

BYD’s rapid European acceleration stems from a unique foundation as a battery manufacturer that transformed into an automaker, unlike traditional car companies pivoting to EVs.

Founded in 1995 as a battery company, BYD spent its first decade mastering energy storage technology before entering the automotive market in 2003 1.

This expertise culminated in their proprietary Blade Battery technology, which has become a key competitive advantage, offering enhanced safety, longer range, and faster charging capabilities that European manufacturers are still working to match 2.

The company’s battery-first approach gave it a crucial head start in developing integrated electric powertrains, allowing BYD to control the entire supply chain from battery cells to finished vehicles, resulting in cost advantages of 20-30% over European competitors 3.

By celebrating its one-millionth electric vehicle in 2021 (a Han EV) 4, BYD had already achieved mass production expertise long before most European brands had launched their second-generation EVs.

2️⃣ BYD employs a methodical, proven market entry playbook

BYD’s European expansion follows a carefully tested formula refined across multiple international markets, beginning with strategic test markets before broader deployment.

The company first entered Europe through Norway in 2021 with just 100 Tang SUVs 5, using the EV-friendly market as a laboratory to understand European consumer preferences before expanding more widely.

This mirrors BYD’s successful approach in Latin America, demonstrating a pattern of using smaller, receptive markets to refine products and operations before major investments.

BYD’s current European success stems from its ability to rapidly adapt its product mix to local preferences, including quickly pivoting to offer hybrid models when pure EVs faced adoption challenges—a flexibility evidenced by their sales mix in the UK, where plug-in hybrids now constitute a significant portion of their nearly 12,000 vehicles sold through April 2025 6.

The appointment of Maria Grazia Davino, former UK head of Stellantis, exemplifies BYD’s commitment to hiring local expertise—a strategy analyst Felipe Munoz identified as crucial: “They are correctly hiring people from legacy carmakers in Europe, people who know how the business works” 7.

3️⃣ The electric vehicle landscape is experiencing a dramatic power shift

The European automotive market is undergoing its most significant restructuring since the post-war era, with BYD’s rise emblematic of broader changes in competitive dynamics.

Tesla, once the undisputed EV leader, has experienced a sharp 60% decline in German sales in early 2025 7, creating an opening that BYD has strategically exploited by tripling its sales in the same period.

Chinese manufacturers collectively have captured 55% of global BEV sales 8, with BYD leading this charge in Europe as part of China’s broader industrial strategy that invested an estimated $231 billion in EV development between 2009-2023 9.

Traditional European automakers face unprecedented pressure, with their combined market share in China plummeting from 64% in 2020 to just 35% by 2024 9—a cautionary trend that could repeat in Europe without significant adaptation.

The shift is particularly pronounced in the UK, where BYD’s sales jumped from just 1,611 vehicles in early 2024 to nearly 12,000 in the same period of 2025 6, putting them on track to surpass established brands like Fiat, Honda, and Mini that have been fixtures in British driveways for decades.

Recent BYD developments

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