The European automotive industry struggles to defend against a formidable rival from over 7000km away.

The automotive industry just welcomed new car models from a formidable competitor.

0
112

BYD has recently officially launched 5 models at the only store in Berlin, Germany. This is the latest sign that BYD is rapidly expanding into what is considered the birthplace of the global automotive industry – Germany, and beyond that, all of Europe.

In fact, BYD’s only store in Berlin, Germany is operated by distributor partner Sternauto. This unit has the exclusive rights to sell BYD vehicles in the eastern region of Germany. Sternauto opened this showroom to get closer to customers in the context of increasing demand for affordable electric vehicles in Germany.

Oliver Hein, manager of BYD responsible for Sternauto, said: “One of BYD’s major concerns is that this brand is not familiar to German customers.” However, he also positively stated that brand awareness will soon improve as BYD is investing heavily in marketing.

BYD Seal model at the store in Berlin, Germany.

Currently, BYD’s revenue mainly comes from the Chinese market, but the world’s largest electric vehicle manufacturer is aiming to go beyond national borders with factories in Hungary, Brazil, and Thailand under construction.

In terms of sales in the last quarter of 2023, BYD surpassed Tesla to become the world’s number one electric vehicle manufacturer. BYD is growing at an astonishing rate with a net profit increase of about 86.5% compared to 2022.

However, BYD is the subject of investigation by European officials to see whether Chinese electric vehicles coming to Europe have an advantage over European models or not. This action shows a serious legal battle between Europe and China as Europe tries to protect its market from lower-priced competitors.

Chinese vehicles when coming to Europe, although they are more expensive than the Chinese market, are still cheaper than their European counterparts. However, Chinese vehicles are still facing difficulties from supply chain bottlenecks to complex import procedures and certification costs.

Oliver Hein commented: “Chinese brands will undergo major transformations in the next 5 to 10 years. If someone runs out of energy, they will soon leave the market.” However, he still believes that BYD has the elements to succeed.

SOURCEcafef
Previous articleVietnam’s ‘Product’ Gaining 34 Times Increased Import from China: Expected to Generate Hundreds of Millions USD by 2023, Especially Popular in Cambodia and the US
Next articleHanoi’s ‘bánh kẹo capital’ suffers as people rush to buy for Tet holiday