At the IAA Mobility 2023: BYD Advances Its Global Strategy with Strong Presence in Munich

With a female perspective to create warm automotive news, the Munich auto show (IAA Mobility 2023) has drawn unprecedented attention as the first major global auto show after three years of pandemic. A key factor is the heavy participation of Chinese automakers.

According to statistics, apart from European and American automakers like BMW, Mercedes-Benz, Audi, Volkswagen, and Ford, Japanese and Korean automakers were mostly absent. In contrast, Chinese companies such as BYD, Avatr, Leapmotor, XPeng, Seres, MG, and Dongfeng Group brought their vehicles. Additionally, battery and tech suppliers like EVE Energy, Horizon Robotics, ECARX, and LightChuang also attended.

As a Chinese media outlet joked: “Germany sets the stage, China performs.” U.S. media reported: “The Munich auto show is no longer Germany’s home turf; it has become a personal show for Chinese automakers.” European media noted: “BYD is gradually expanding into Europe by targeting key markets and building retail networks, posing a major threat to European brands.”

Following the Shanghai auto show, Chinese car brands, absent from the international stage for three years, once again became the focus of the global automotive industry as they accelerate their entry into Europe. In his opening speech, German Chancellor Olaf Scholz acknowledged the achievements of Chinese automakers in electrification and encouraged German companies to be “motivated, not intimidated, by competition from Chinese electric vehicles.”

Among the exhibitors, BYD undoubtedly drew the most attention—not only because it secured the largest booth at the show and launched six new energy models (Seal, Song PLUS EV Champion Edition, Yuan PLUS / BYD ATTO 3, Dolphin, Han, and Denza D9), but also because it is the world’s first automaker to fully commit to new energy and the global leader in new energy vehicle sales. In 2022, BYD sold 1.8685 million units, far exceeding Tesla’s second-place numbers.

According to MarkLines data, in the first half of 2023, BYD’s cumulative global sales of 1.2556 million vehicles surpassed those of Mercedes-Benz and BMW, breaking into the “global top 10 automakers” for the first time—a historic first for a Chinese auto brand and the first time Chinese auto sales exceeded those of joint-venture brands.

Beyond sales, BYD’s profitability has improved significantly. Its mid-year financial report shows revenue of 260.124 billion yuan (up 72.72%) and net profit attributable to shareholders of 10.954 billion yuan (up 204.68%).

Behind this profit is BYD’s remarkable cost control. On the opening day of the Munich show, UBS Securities released a teardown report on the BYD Seal, showing that about 75% of its parts are made in-house. Compared to the Tesla Model 3, the Seal’s production cost is 15% lower; compared to a comparable model from Volkswagen built in Europe, it is about 35% cheaper.

This cost control reflects BYD’s comprehensive strength in electrification technology and vertical integration. Renault CEO Luca de Meo also commented at the show: “Chinese cars are clearly very competitive in the electric vehicle value chain.”

Such cost control gives BYD flexibility. On September 6, the BYD Seal DM-i launched with a starting price below 170,000 yuan, hailed by media as a “king of volume” that could suffocate joint-venture mid-level cars.

In overseas markets, BYD prices are comparable to those of BBA. For example, the BYD SEAL launched in Munich (the pure electric version) is priced at 18.98–27.98万元 in China, while in Germany the two models are priced at 50,990 euros (about 400,000 yuan) and 44,900 euros (about 350,000 yuan), highlighting the rapid development of China’s new energy vehicles and Europe’s slower electrification transition.

“BYD’s new energy passenger vehicles have entered 15 European countries. With high-quality local partners, we have opened over 140 stores in the UK, Germany, France, Italy, Spain, etc., providing consumers with convenient and comfortable car-buying experiences,” said Shu Youxing, General Manager of BYD’s European Auto Sales Division. He said BYD will continue to deepen its presence in the European market, enriching its model lineup to meet diverse consumer needs.

Europe, especially Germany, is known as a “high ground” of global automotive industry, home to luxury brands like BMW, Mercedes, Audi, and ultra-luxury brands like Porsche, Rolls-Royce, Lamborghini, Bugatti. The market is relatively saturated and considered one of the hardest to crack.

Entering the European market is a key step in BYD’s overseas strategy, not only significant for BYD itself but also as a leader for Chinese brands going global.

1. Entering 15 Countries, Opening 145 Stores: How BYD Deploys Overseas Markets

BYD’s overseas expansion mirrors its domestic growth. In 2021, BYD’s domestic sales surpassed 740,000 units. In May that year, it announced the “passenger vehicle going global” plan, starting with Norway. In 2022, as the world’s first traditional automaker to stop producing fossil-fuel cars, BYD’s sales jumped to 1.868 million. In February 2022, the Yuan PLUS (BYD ATTO 3) started presales in Australia; in July, BYD announced its official entry into Japan’s passenger car market; in September, it launched Han EV, Tang EV, and Yuan PLUS in Europe; in November, it launched Song PLUS DM-i and Yuan PLUS in Brazil, covering Southeast Asia, Europe, the Americas, and more.

In 2023, BYD accelerated its overseas push: in March, it held brand launches in Jordan, Uzbekistan, and Madrid, Spain; it also broke ground on its passenger car production base in Thailand, marking its first wholly owned overseas factory.

BYD has set two main growth drivers for 2023: brand diversification (covering BYD’s Dynasty and Ocean series, Denza, Yangwang, and Fangchengbao brands) and continued overseas expansion. BYD has entered the UK, Spain, Jordan, and more.

In an interview at the Munich show, Li Yunfei, General Manager of BYD’s Brand and PR Department, said: “Within just one year, BYD has signed contracts with many high-quality local European dealer partners, such as Louwman Group in the Netherlands, RSA in Norway, and Hedin Group in Sweden. We have quickly introduced multiple new energy models to 15 European countries, including Germany, the UK, Spain, Italy, France, the Netherlands, Norway, etc., opening a total of 145 stores.” In Germany alone, BYD has cooperated with seven local dealers and has stores in 17 major cities, including Frankfurt, Hamburg, and Cologne.

Li Yunfei also outlined three main aspects of BYD’s European expansion:

• Products: Within one year, BYD has launched five models in Europe, aiming to provide diverse and attractive choices for European consumers.
• Local partnerships: Besides dealers, BYD shares its technological innovations (battery, motor, electronic control) with local supply chain and industry partners to stabilize Europe’s industry chain, and works with downstream partners to provide valuable after-sales services.
• Localized investment and talent: Leveraging over 20 years of overseas business experience, BYD has built a mature international team and gradually localized talent in overseas markets.

In October 2022, BYD signed an agreement with global car rental giant Sixt, which will purchase at least 100,000 new energy vehicles over six years. Some overseas students have already rented BYD ATTO 3 through Sixt.

2. Advancing the Overseas Strategy to Become a Global New Energy Vehicle Company

As the saying goes, the product nature of automobiles dictates that globalization is the only way. With rising competitiveness, Chinese brands going global is a must to become an automotive powerhouse. Many companies start with Southeast Asia or South America, but successfully entering mature markets like Europe is crucial for gaining global voice.

Europe is the birthplace of the traditional auto industry, where local brands are strong—four out of five cars sold in Europe are locally made. Over the past decade, Europe’s auto trade surplus has been 70–110 billion euros annually, a pillar industry.

Japan is also a very “insular” market, dominated by Toyota, Nissan, Honda, Mazda, etc. Japanese brands hold 90% of their home market, while German automakers hold 64.8% in Germany.

Now, BYD has successfully entered both markets. In Europe, BYD has launched multiple models and partnered with local dealers. Recently, German mainstream broadcaster DW and Auto Motor und Sport gave high praise to the BYD ATTO 3 after detailed testing.

In fact, the ATTO 3 is popular in many countries. According to Bestsellingcarsblog data, BYD ATTO 3 topped Israel’s car sales for nine consecutive months, and also won New Zealand’s monthly pure electric vehicle sales crown.

With the addition of Dolphin, Seal, and future models like Song PLUS EV and Denza D9, BYD’s overseas sales are expected to rise. Currently, BYD’s new energy passenger vehicles are present in 54 countries and regions. Monthly overseas sales exceed 10,000 units; in the first half of 2023, total overseas sales reached 74,289 units, far exceeding last year’s total. In August 2023, exports exceeded 20,000 units, reaching 25,000.

Some investment firms forecast BYD’s 2023 passenger car exports could reach 250,000 units.

For BYD, going overseas not only boosts sales and profits but is also an essential path to becoming a global automotive enterprise.

Conclusion

As BYD Chairman Wang Chuanfu said during the half-year earnings conference: “This is an era of ‘fast fish eating slow fish,’ not ‘big fish eating small fish.’ Automakers that fail to surge ahead in the next 3–5 years will miss the opportunity. Core technology, the right strategic direction, and fast decision-making are keys to success.”

The overseas strategy, one of BYD’s two major strategies this year, reflects its sense of urgency and long-term vision. Whether through new product launches, cooperation with overseas suppliers and dealers, or factory construction plans, BYD is determined to become the world’s number one.

Now that BYD has entered the global top 10 automakers, it is worth anticipating when it will break into the top three with continued momentum in the second half of the year.