European Market
Promising European Market
Striking EV Adoption Rates
Come 2026, there will be 4.4 million EVs sold in EU countries, compared to just 1.9 million in the United States - that equates to 997 and 556 vehicles per 100,000 people (using 2022 population figures), respectively. From 2016 to 2019, the US was ahead in terms of adoption, but Europe rapidly became the pacesetter.
Statista estimates EV revenues in the European Union to amount to $120 billion in 2022, compared to just $35 billion in the U.S. By 2026, revenues in the E.U. are set to surpass the $300 billion mark. In contrast, in the same year the U.S. should break the $100 billion barrier for the first time.
Source: Statista, 2023
Considering the market share of EV, Europe, defined here as the European Economic Area, is now in second place, with a BEV share of 10% and a PHEV share of 9%.
Source: International Council on Clean Transportation, 2022
Regulatory Drive
In 2020, Regulation (EU) 2019/631 entered into force, setting CO2 emission performance standards for new passenger cars and vans.
In 2023, the European Parliament and the Council adopted Regulation (EU) 2023/851 amending Regulation (EU) 2019/631 setting a 100% reduction target for both cars and vans from 2035 onwards.
The major EV consuming countries in the European market have proposed targets related to global zero-emission vehicle mandates and internal combustion engine bans.
Source: IEA, 2023
Infrastructure Expansion
Over 560,000 publicly accessible charging points were installed by mid-2023, marking a 50 percent increase over the previous year. This expansion underscores Europe’s commitment to reducing carbon emissions and promoting sustainable transportation. The European model is characterized by a higher percentage of alternative current (AC) charging points, which constitute 86% of the total.
The figure below shows why BYD has focused on China in recent years, but how Europe is a growing opportunity.
Source: EV Market Reports, 2024
Commercial Fleet Potential
As of 2022, nearly 90 million out of a total 336 million vehicles in Europe belonged to commercial fleets, which are mainly company cars and taxis. It is predicted that this number will rise to 100 million by 2030, with approximately 50% being passenger cars, 41% light commercial vehicles, 8% buses, and 1% heavy-duty vehicles. These electrified fleets are projected to account for a significant 50% of the total EV energy demand.
Source: EV Market Reports, 2023
Sales in Europe
Commercial Vehicles
BYD's earliest official action in Europe dates to 2013. Front BYD Europe's Managing Director summarized the satisfactory results of the ebus trial and expressed his confidence in future developments at the opening day of Busworld in Belgium.
After that, BYD introduced various products to expand its European market.
Electric Bus Fleets
London in 2013
Oslo in 2018
Deutsche Bahn in 2021
Significant Effort in the Airport Field
Amsterdam Schiphol Airport in 2015
Zaventem Airport in 2019
Glasgow Airport in 2019
Taxi Fleets
Rotterdam Taxi Centre (RTC) in 2013
Brussels government in 2014
Private Hire Cars
Thriev in 2013
SIXT in 2022
Energy Storage
ML System S.A. in 2018
Forklifts
Cottage Farms in 2020
Trucks
Top Delivery Services (TDS) in 2021
In the European electric bus market in the whole period 2012 – June 2023, Solarishas the largest market share (12%) with 1,884 units. The Chinese BYD is second with 1,613 units registered. Third is also BYD, in joint-venture with ADL: 1,491 units (Sustainable Bus, 2023).
Passenger Vehicles
BYD first entered the European market at the end of 2021 with one model in Norway, followed two years later by five more models in eight markets, including France, Germany, Italy and the UK.
However, its share remains negligible. As of November 2023, BYD had sold only 13,250 vehicles in Europe, giving it a market share of just 0.1%. The Atto 3 was its best-selling model with 10,841 units sold, while its other five models sold just few hundred units each (Automotive News Europe, 2024).
In Q1 2023, most European EV sales were captured by the top five automotive groups – Volkswagen Group, Tesla, Stellantis, Mercedes-Benz and Hyundai-Kia. They accounted for nearly two-thirds of the market share.
When it comes to pure electric vehicles (BEVs), Tesla holds the second position, slightly behind Volkswagen. In the plug-in hybrid electric vehicle (PHEV) market, Volkswagen takes the lead, followed by Mercedes-Benz and BMW.
Source: Counterpoint Research, 2023
Production in Europe
In 2017, BYD's first owned electric bus plant in Europe opened in Komarom, Hungary, covering more than 66,000 square meters, with an annual production capacity of 400 buses.
In the same week, BYD announced the purchase of an 80,000-square-meter plot of land in Beauvais, north of Paris, to produce passenger cars. However, the fact that the Paris plant was still used to build electric buses reflects BYD's weakness in the European market for passenger cars. The first French-built BYD buses were supplied to the local municipality of Beauvais in 2018, but since then there have been very few orders, and the plant was closed in 2021. Critics attribute this to BYD's over-reliance on government orders.
In 2023, BYD announced its further plan to build a fully fledged car plant in the city of Szeged in southern Hungary, which would be the first large-scale car factory by a new Chinese brand in Europe. Hungarian Foreign Minister added that the government would provide financial incentives to BYD for building the plant.