BYD Reportedly Plans $20B Europe Push While Warning China's EV Price War Is ‘Not Sustainable’

BYD (BYDDY) reportedly plans to spend up to $20 billion expanding its presence in Europe over the coming years, a senior executive said, even as the company navigates intense price competition in its home market of China.

BYD’s U.S.-listed shares fell more than 3.5% in midday trade on Thursday. 

Executive Vice President Stella Li told Bloomberg News in London that the company’s aggressive international push will continue, with a sharp focus on Europe.

BYD’s rising market share in countries like Germany, the U.K., and Italy is being driven by an expanding dealer network, competitively priced models, and strong demand for plug-in hybrids.

“We want to make sure it’s successful in the long run,” Li said, noting that BYD is also investing heavily in after-sales service to boost brand familiarity and customer retention. “If we decide to do something, we put all our resources behind it.”

In May, the company surpassed Tesla (TSLA) in European deliveries, aided by a broader model lineup. BYD currently sells around nine to ten models in the region, compared to Tesla’s four.

Despite its global expansion, BYD is showing signs of strain in China’s saturated EV market, where it helped lead a wave of steep price cuts. Li said the ongoing price war is “very extreme” and “not sustainable,” though she did not confirm whether BYD would scale back on discounting.

Her comments follow a rare intervention by Beijing, which earlier this month summoned auto executives and warned companies against selling below cost or offering “unreasonable” incentives

BYD’s stock has gained more than 56% this year and over 83% in the last 12 months. 

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