BYD to Expand Retail Footprint as Localisation Plans Advance

Chinese electric vehicle giant BYD is entering one of the most aggressive phases of its overseas expansion, unveiling plans to rapidly scale its presence across Europe while simultaneously deepening its footprint in key emerging markets. The automaker’s strategy is centred on localisation, infrastructure investment, and diversified regional growth—an approach aimed at insulating the company from external shocks and ensuring lasting relevance in the global EV landscape.

Strategy Abroad: BYD’s Global Expansion Enters a New Phase

Speaking at an industry event in Frankfurt, BYD’s regional managing director for Europe, Maria Grazia Davino, confirmed that the company would double its European retail footprint by the end of 2025. With a target of 1,000 points of sale across Europe, BYD is positioning itself to compete directly with established brands that have dominated the continent for decades. Davino emphasised that the company’s strategy is rooted in proximity: “In line with successful competitors, we need to have proximity and win proximity to the European customers.”

This philosophy underpins BYD’s commitment to manufacturing vehicles locally. The company has already broken ground on its first European factory in Hungary, which will serve as BYD’s regional production hub. Additionally, the automaker is moving ahead with a second plant in Turkey and is evaluating a third European facility, with Spain emerging as the frontrunner. While Germany was previously considered, internal debates around high labour and energy costs have pushed BYD to explore more competitive environments.

Within three years, BYD aims to manufacture 100% of its European-market vehicles within Europe, a move designed to reduce logistical costs, mitigate trade risks, and strengthen political goodwill in a region where concerns about Chinese imports remain high.

Driving European Growth Through Localisation

BYD’s European sales have surged, rising over threefold to 80,807 vehicles in the first nine months of 2025. This expansion has been driven by a broadened product mix, including the introduction of plug-in hybrids alongside fully electric models—giving the brand an important advantage in markets where EV infrastructure remains uneven.

Localisation is more than a production strategy; it is a long-term political and economic hedge. Europe’s regulatory environment is evolving, with increasing pressure on foreign automakers to demonstrate genuine investment rather than relying solely on exports. Davino described Europe as a “mature region” requiring deep commitments across knowledge, investment, and operational capabilities—an acknowledgement that BYD views the region as a permanent fixture in its global strategy.

The automaker’s recent model release, the ATTO 2 DM-i, illustrates how BYD designs products tailored to regional needs. With its hybrid “Super Hybrid DM technology,” the vehicle offers a combined range of up to 1,020km and an EV-only range of 90km—figures that respond directly to European consumer concerns about charging availability. BYD’s ability to blend EV efficiency with hybrid reliability positions it well for markets transitioning gradually toward fully electric mobility.

Africa: Strategic Infrastructure and Market Development

While Europe remains BYD’s primary battleground in the developed world, the company is simultaneously investing across Africa, where long-term demographic and economic growth present significant opportunity.

In South Africa, BYD outlined a sweeping infrastructure plan that includes 200–300 charging stations in 2026, followed by the rollout of 1MW fast-charging stations—a transformative boost to the country’s EV ecosystem. Although current BYD vehicles cannot yet charge at 1MW, the company is future-proofing the infrastructure in anticipation of new battery technologies.

The expansion will begin with charging units installed at BYD dealerships, gradually extending to major highways and dense urban areas. Several installations are expected to appear at well-known fuel stations nationwide, creating a seamless transition for traditional vehicle users.

BYD is also expanding its solar footprint in South Africa, recognising that renewable energy is critical to the long-term viability of EV adoption in a country where grid instability remains a concern. The company—valued at approximately R2 trillion—is prepared to invest “a lot.”

Despite this aggressive infrastructure push, BYD currently has no immediate plans to establish local vehicle manufacturing in South Africa. Li emphasised that BYD is still a relatively new market entrant, and deeper industrial integration will require time. However, the market’s strong automotive base and access to key minerals position South Africa as a viable long-term candidate should demand grow further.

Competition in the region is intensifying with Volvo (under Chinese parent Geely), Mercedes-Benz, BMW, Porsche, Chery, GWM, and Tata all vying for market share. Still, BYD’s expanding model lineup—now including the Dolphin Surf, Seal, Sealion, Shark, and others—has strengthened its position within the growing NEV segment.

Latin America: Building Market Depth

BYD’s broader strategy also includes rapid expansion across Latin America. Recent launches in key cities such as Buenos Aires have supported steady growth, with the company leveraging plug-in hybrid technologies to appeal to consumers in regions where charging networks are still developing.

BYD aims to sell up to 1.6 million vehicles abroad in 2026, with Europe, North America, and ASEAN each contributing roughly one-third of overseas sales. This marks a significant increase from the expected 900,000 to 1 million overseas units in 2025.

The automaker’s strategy in Latin America mirrors its broader global plan: build local assembly where feasible, expand dealership networks, and introduce diversified models tailored to local economic conditions.

Managing Competition and Global Risks

Despite its growth, BYD faces increasing competition in China from domestic rivals such as Geely and Leapmotor, especially in the budget segment. These challenges underscore why global expansion is essential to BYD’s future stability, allowing the company to reduce dependence on China’s highly competitive domestic market.

The company has spent the past five years building eight mega factories in China and is now shifting its investment focus to overseas facilities. Capital expenditure is expected to fall significantly in 2026, indicating that BYD believes its current production capacity—both domestic and international—will meet future demand.

A Global Automotive Powerhouse in the Making

BYD’s strategy abroad is multi-layered: enhance localisation in developed markets, build early dominance in emerging ones, and diversify risk across regions. With Europe as a key production hub, Africa as a strategic growth frontier, and Latin America as a fast-expanding market, BYD is positioning itself as a truly global automotive leader.

As geopolitical tensions reshape supply chains and environmental policies accelerate the energy transition, BYD’s ability to integrate localisation with global ambition may well define its competitive edge over the next decade.

Written By: 

*Cole Jackson

Lead Associate at BRICS+ Consulting Group 

Chinese & South American Specialist

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