BYD announced the launch of three EVs in the European market at Monday’s press day for the first Paris Motor Show in four years. By bringing its products and innovation to Europe, the company aims to become the “global leader” in EVs, said Michael Shu, managing director of BYD Europe. The show opens to the public on Tuesday.
Around 20% of the world’s electric-vehicle sales come from Europe, making it the largest market after China. The European Commission has proposed to require all new cars sold in 2035 and beyond to emit zero carbon dioxide, which would mean that hybrids would no longer be an option in the region.
BYD will release the EVs in Germany by the end of 2022, then in France, the UK and other major markets in 2023. BYD will mainly export them from China but is considering supplying them from a planned Thai factory.
Until now, BYD has sold EV passenger vehicles in Northern Europe on a trial basis. Now it will make a full entry into Europe, the world’s second-largest EV market at an annual 1.2 million vehicles.
The trio will be the Atto 3, a sport utility vehicle with a 420km range; the Tang, another SUV; and the Han sports sedan.
Prices start at €38,000 (US$37,386) – on a par with or below the Nissan Ariya and the Subaru Solterra. The Tang will be equipped with BYD’s in-house battery.
BYD sold 320,000 EVs globally in the first half, coming in after Tesla. BYD is able to keep the price of its vehicles down by making its own batteries.
“BYD has offered competitive prices without the help of subsidies,” said Zhou Jincheng, lead China analyst at Nagoya-based auto industry research firm Fourin. BYD’s EVs “have advanced capabilities, such as smartphone linkage, so they have the potential to be well-received in Europe”.
Chinese automaker Great Wall Motor announced six new models, including EVs. It will start selling them in Europe as early as 2023. Zhejiang Geely Holding Group, which owns Volvo Car, and SAIC Motor, which owns British brand MG, have grown their EV sales. Both Geely and SAIC are already among the top 10 EV sellers in Europe.
European automakers are responding by accelerating their shift to EVs. France’s Renault has not only announced three EV models but also plans to spin off its EV business and float it on the stock market as soon as the second half of 2023.
Stellantis unveiled at the show its first electric Jeep, slated to launch in Europe in early 2023. Starting with the new model, all new vehicles sold in Europe will be EVs by 2030, said Christian Meunier, CEO of the Jeep brand.
Stellantis CEO Carlos Tavares toured the show Monday with French president Emmanuel Macron. Tavares announced that the company will build 12 EV models in France, up from the current six. The all-electric Peugeot 308, which is under Stellantis, will be newly produced in France.
Volkswagen led European EV sales in the first half, with 126,300 vehicles, according to MarkLines. Stellantis took second place at 112,200.
Non-European makers have also hit it big in Europe. Tesla, which started up a new factory in Germany, was third place, with 84,900 units. Hyundai Motor Group, whose global strategic vehicles are selling well, ranked fourth at 79,100.
General Motors plans to return to Europe as early as 2023 with EVs, adding to the widening competition in the market.
Meanwhile, Japanese EVs are hardly making a blip. The Paris Motor Show hosted conspicuous exhibits from Chinese and European carmakers, but Japanese automakers decided not to participate.
Nissan Motor’s Leaf has attained a certain level of recognition in Europe, but Honda Motor and Mazda Motor have sold only a few EVs in the market.
When it comes to electrified vehicles, Toyota Motor and other Japanese peers have yet to change their hybrid-heavy sales mix.
“If Japanese automobiles don’t become well-represented in EVs, their makers risk being thought of as unwilling to embrace decarbonisation,” said Waichi Yamamoto, a principal at German consultancy Roland Berger.
The EU is also set to start requiring lithium-ion batteries to be labelled with their carbon footprints in 2026. Though the energy crisis caused by the war in Ukraine has dampened Europe’s climate ambitions, the region nevertheless continues to work toward decarbonisation and influence global emissions standards.