Chinese automaker BYD revamps its European strategy after encountering initial challenges, as reported by six current and former executives. The company is refining its approach to strengthen its presence in the region and attract more consumers.
BYD has struggled to build a robust dealer network and hire executives with deep expertise in European markets. It has also faced challenges in meeting the demand for hybrid models in regions where fully electric vehicles are less favored, according to News. Az, citing Reuters.
The automaker has taken action to overcome setbacks in the key export market, considerably expanding the dealer network. Additionally, the company has offered generous salary packages to lure top executives from European automakers, particularly Stellantis.
In December, the manufacturer revealed that plug-in hybrids would play a key role in its European expansion. The move followed advice from BYD European special advisor Alfredo Altavilla—one of the executives brought on during the company’s European restructuring. Altavilla informed BYD Founder and Chairman Wang Chuanfu that an all-electric approach would be difficult to implement in many European markets.
Reports indicate that BYD has recruited certain European executives, and the company has openly acknowledged challenges within the German market. It is the first in-depth account of the issues identified by BYD’s internal team.
BYD initially approached Altavilla, a former Fiat-Chrysler executive, in June and officially declared his appointment in August. In December, Altavilla stated in Italy that plug-in hybrids would be central to BYD’s future strategy in Europe, emphasizing that ignoring consumer preferences by exclusively offering EVs would be unwise.
Recent data from the European market reveals that hybrid vehicles make up 35.2% of new car sales in 2025, while hybrids and petrol cars combined make up over 71% of all registrations. Although battery electric vehicles (BEVs) have seen growth, they represent only 15% of the market, indicating that most European consumers continue to favor hybrid technology as a transitional option.
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