In 2025, China and Europe will mark a significant historical milestone of 50 years of diplomatic relations. Against the backdrop of a turbulent and evolving globalization process and a profoundly changing international environment, Chinese enterprises' global expansion strategies continue to face new challenges and hurdles. The European market, which has shown increased openness and willingness to cooperate, has undoubtedly become a new opportunity for Chinese companies seeking breakthroughs and growth overseas.
When it comes to cooperation between Chinese enterprises and foreign capital, the more familiar model in the public perception is: China produces and provides the market, while foreign companies provide the technology. However, in the new energy vehicle industry, this dynamic is changing.
Havana Lan, Country Manager of BYD France, stated that Chinese electric vehicle companies have advantages in full industrial chain development, scale, and technological innovation. Therefore, BYD's expansion into the European market can leverage advanced domestic technology to promote localized production in Europe and provide products to European consumers.
In contrast, how to enhance brand recognition remains a challenging issue for Chinese electric vehicle companies entering the European market. On the one hand, local European automotive brands remain strong. In France, the market share of top domestic legacy automakers reaches 54%, and as a foreign and newcomer, BYD faces undeniable competitive pressure.
On the other hand, changing local consumers' stereotypes about "Made in China" will also take time. "Letting local consumers see BYD" has been a problem Lan and her colleagues have been working to solve over the past three years.
Lan explained that because the way French people receive information is more traditional compared to China, the team has focused on television advertising. Additionally, BYD collaborates with local dealers to participate in touring exhibitions and organize offline events across France.
Lan admitted that when people are unfamiliar with BYD, they might not visit BYD stores. "They won't come to BYD, so BYD goes to find them. We go wherever the people are. This way, we can better present our brand and products in front of everyone."
After three years of efforts, BYD has progressed from initially debuting three models at the Paris Motor Show and opening the door to the French passenger car market to now operating 70 stores in France and launching 10 models. According to Lan, today in France, when BYD is mentioned, many people immediately respond with "I know, I've heard of it." She also mentioned that once, when she took an Uber to the airport, the driver told her that many of his friends had bought BYD cars.
Amid the complex international environment, the path for Chinese electric vehicles to go global is not without obstacles. Starting from October 2024, on top of the existing 10% tariff, the European Union imposed additional countervailing duties of up to 35.3% on pure electric vehicles produced in China and exported to the EU market, effective for five years. Among them, BYD faces a 17% tariff. However, this does not seem to have slowed down the global expansion of Chinese electric vehicle companies. Lan revealed that BYD's sales network now covers over 30 countries and regions in Europe. By the end of this year, they plan to open more than 100 stores in France, with the total number of stores across Europe expected to reach 1,000.
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