As Brussels softens its stance on combustion engines, China’s fastest-growing car brand says hesitation—not regulation—is Europe’s biggest threat.
European car makers risk slipping even further behind their Chinese rivals if they continue to hedge their bets between combustion engines and electrification. That’s the stark warning from Stella Li, BYD’s European boss, who believes regulatory back-and-forth is forcing legacy manufacturers to dilute their efforts—while BYD pushes relentlessly in a single direction.
The European Union’s decision to soften its planned 2035 ban on new combustion-engined cars, allowing up to 10 per cent of sales to continue burning fossil fuels, was welcomed by many European manufacturers. Several had argued that EV sales targets were racing ahead of real consumer demand, and that flexibility was essential to protect jobs and margins.
BYD, however, is unimpressed.
“We don’t care about revisions to the green deal, or delaying the ban for combustion cars,” Li said during a London media briefing attended by Auto Express. “Our strategy, from small cars to large cars, is to offer EV and DM-i.”
Growth without compromise
Unlike many European brands, BYD has already abandoned pure combustion cars entirely. Its line-up consists solely of battery-electric vehicles and plug-in hybrids, branded DM-i for ‘dual motor’. Despite—or perhaps because of—this clarity, the company’s European growth has been explosive.
In the first 10 months of 2025, BYD’s registrations in Europe jumped from 36,000 to 138,000 year-on-year, a 285 per cent increase. That momentum comes against a backdrop of stark contrast: EVs now account for around 60 per cent of new car sales in China, but just 16.4 per cent in Europe.
China’s advantage, Li argues, was locked in long ago. A decade-old industrial strategy prioritised battery technology and global supply chains, allowing firms like BYD to scale rapidly while Western rivals hesitated.
“The European Union is trying to push the Green Deal back and forth, then for a lot of auto companies their R&D is back and forth,” she said. “How can they compete with a company like BYD which only believes in one direction?”
Her criticism is blunt: split development budgets mean split results. “Their R&D expense needs to be split into two. You never have enough money to do that, and you’ll never be good at one thing.”
From challenger to giant
BYD is no longer an outsider throwing stones. It has already overtaken Tesla to become the world’s biggest electric-only car maker and now ranks as the third-largest automotive brand globally, behind Toyota and Volkswagen. In total, it has sold 14.5 million ‘new energy vehicles’—EVs and plug-in hybrids combined.
And its ambition is unmistakable. “Our goal is to become the number one global automotive brand,” Li previously told Auto Express.
Europe is central to that plan. By 2026, BYD aims to double its European retail footprint from 1,000 to 2,000 outlets, covering 90 per cent of the market. A wave of new models is on the way, including the Sealion 5 DM-i SUV to rival the Kia Sportage, the Seal 5 DM-i compact saloon, and the Dolphin G, expected to be a small plug-in hybrid SUV.
Made in Europe
Crucially, BYD’s European push will soon be underpinned by local manufacturing. Its new Hungarian factory will begin trial production in the new year, with series assembly scheduled for spring. The first model off the line will be the Dolphin Surf, BYD’s entry-level EV, followed by the Atto 2 small SUV in both electric and hybrid form.
The plant has an installed capacity of 300,000 units, and Li believes BYD will reach that figure in under two years. Local production will not only reduce costs and tariffs, but also give the company a stronger political and industrial voice in the region.
“We haven’t been part of discussions around delaying the ban on new petrol car sales,” Li admits. “But step-by-step, we will start raising our voice.”
Premium ambitions and flash charging
BYD’s European expansion won’t stop at the mainstream. Li confirmed that Denza, the group’s premium brand, will launch in Europe at the beginning of April.
Three models are planned for next year, all featuring high-performance electric platforms, autonomous parking and ultra-fast ‘flash charging’. Among them are the Z9GT estate—positioned as a rival to the Porsche Taycan Cross Turismo—the D9 seven-seat MPV, and the B5 SUV.
Denza’s technology headline is charging speed. Built on a high-voltage architecture, the cars are claimed to recover nearly 250 miles of range in just five minutes. To support this, BYD plans to roll out its own one-megawatt chargers, targeting 300 units in the UK and 3,000 across Europe.
One direction, full throttle
For Li, the lesson is simple: commitment beats caution. While Europe’s established manufacturers debate timelines and hedge their investments, BYD is betting that clarity—and speed—will decide the future of the industry.
“Who is winning?” she asks. In BYD’s view, the answer is already taking shape.
Source: Auto Express
