South Korean media: BYD successfully enters the heart of Europe, where will Tesla go from here?

On July 14, South Korean media News1 published an article stating that China's leading electric vehicle company, BYD, has successfully entered the heart of the European market, surpassing Tesla in sales in Europe, and it is expected that Tesla will face greater difficulties.

In April, the number of electric vehicles registered by BYD in Europe was 7,231, while Tesla's registration volume was 7,165. BYD's sales have already surpassed Tesla's.

Tesla's sales fell by 49% year-on-year, but BYD's sales surged by 169%.

BYD is rapidly penetrating the core of the European market with its compact electric vehicles that are popular among young people.

As of April, BYD achieved a growth of more than 200% in the five major European markets of Germany, the UK, France, Spain, and Italy.

BYD has been especially successful in the UK. As of April 2024, BYD's sales in the UK were only 1,611 units. However, this year, BYD's sales have reached 12,000 units. If this momentum continues, it is expected that BYD will surpass existing giants such as Fiat, Honda, and BMW.

BYD focuses on small, affordable models to attract young buyers, and quickly launched hybrid electric vehicles tailored for Europe to meet the needs of consumers who are still hesitant about pure electric vehicles.

Additionally, by building a large factory in Hungary, logistics costs have been significantly reduced.

It can be seen that BYD's European strategy is very successful.

BYD's success in Europe is particularly encouraging because car prices in Europe are high due to tariffs and other factors, which may increase the company's profit margins.

The average selling price of BYD's cars in Europe is about twice that of the Chinese market, which is expected to offset the decline in profit margins caused by domestic price competition.

Bloomberg commented that BYD is effectively targeting the world's second-largest automobile market after China - Europe (500 billion euros).

Original: https://www.toutiao.com/article/1837618907696200/

Statement: The article represents the views of the author.