China’s top electric vehicle maker BYD is overhauling its European strategy after a series of early missteps, including slow dealer expansion and failing to offer hybrids in key markets, according to six company insiders.
BYD’s initial European expansion, launched in 2023, fell short of expectations as the firm struggled to adapt its China-born strategy to Europe’s fragmented auto market.
The company ended 2024 with just 2.8% market share and 57,000 vehicles sold in the region, despite lofty goals to become Europe’s top EV seller by 2030.
Internal sources say BYD was slow to recruit executives with local knowledge, build a robust dealer network, and realise the demand for hybrid vehicles in countries resistant to full electrification.
To course-correct, BYD has moved quickly. In December, it declared plug-in hybrids would be central to its European plan. This shift followed advice from Alfredo Altavilla, a former Fiat-Chrysler executive and now special adviser to BYD.
He urged the company to provide both EV and hybrid versions for European customers, noting a pure-EV strategy would be “stupid” given current market preferences.
Altavilla has since helped BYD poach senior talent from Stellantis, including Maria Grazia Davino in Germany, Alessandro Grosso in Italy, and Alberto De Aza in Spain. “These were not people we were happy to lose,” a Stellantis source admitted.
The company also replaced its former European head Michael Shu with Stella Li, BYD’s global No. 2, and is working to grow its dealer footprint in Germany from 27 to 120 locations, according to Davino.
The reboot appears to be paying off. BYD tripled its European sales in Q1 2025 to over 37,000 units compared to 8,500 in Q1 2024.
Experts say this agility has long been a BYD strength. The company recently undercut competitors in China by making its “God’s Eye” driver assistance system standard on all models, including those priced under $10,000.
Still, analysts caution that success in Europe won’t come quickly. Tim Albertsen, CEO of leasing firm Ayvens, said BYD is taking its challenges seriously but noted: “What the Chinese do well in China doesn’t always work in Europe.”
One telling misstep came when BYD marketed itself in Germany as the leading “NEV” (New Energy Vehicle) brand – a term familiar in China but meaningless to local consumers.
BYD has declined to comment publicly on the specifics of its internal overhaul, but its intensified local hiring and hybrid rollout signal a deep shift in its European ambitions.
