The Chinese electric car manufacturer BYD plans a significant expansion in Europe by investing 94 million USD to strengthen its presence. A key focus of this investment is to triple bus production in Hungary, highlighting Europe’s strategic role for the company.
BYD Surpasses Tesla in Europe
Amid intense sales pressure in China and the increasing relevance of the European market, BYD has, as of April 2025, surpassed Tesla for the first time as the leading provider of electric vehicles in Europe. This not only underscores BYD’s success but also the potential of the European electric vehicle market.
Profitable Pricing in Europe
A notable aspect of BYD’s European expansion is the high profitability. Vehicles are sold with a significant price markup of 92% to 112% compared to China. For example, BYD earns about €14,300 profit per unit in Europe with the Seal U EV, compared to €1,300 in China. Despite these higher prices, the company remains competitive.
Furthermore, BYD plans to build a new factory in Turkey, which will have an annual capacity of 150,000 vehicles. This factory, part of the customs union with the EU, will expand production capacities and facilitate access to the European market.
Overall, the investment package of 94 million USD and the planned factory in Turkey reflects BYD’s strong strategic interest in the European market, characterized by growing interest in electric mobility and attractive profit opportunities, despite challenges such as EU tariffs.