Chinese automaker BYD (Build Your Dreams) is making a bold move into the European market with its Denza brand, targeting the premium electric vehicle (EV) segment. This strategic shift comes as Europe experiences a surge in EV demand, with consumers increasingly seeking luxurious and eco-friendly driving experiences.
BYD's European Ambitions
BYD has set a lofty goal of capturing 5% of Europe's EV market share, translating to roughly 70,000 electric cars sold annually based on 2023 figures. This ambition extends to plug-in hybrids (PHEVs) as well, potentially reaching a target of nearly 115,000 vehicles. To achieve this, BYD is establishing a production facility in Hungary, expected to commence operations before 2026 with an initial production capacity of 150,000 vehicles per year, which can be scaled up to 300,000 units. Notably, the Hungarian plant will focus solely on electric car production, with battery packs built on-site.
Building a European Identity
BYD is taking a localized approach to its European expansion. The company emphasizes that it aspires to be a "European company," not just a Chinese automaker operating in Europe. This commitment is reflected in its pledge to leverage a local workforce, supply chain, and advanced technology adapted from China. BYD is actively courting European suppliers to support its Hungarian plant, fostering a collaborative environment from the get-go.