China’s top electric vehicle manufacturer, BYD, is undertaking a major overhaul of its European operations following early strategic miscalculations that hampered its growth on the continent. According to six current and former executives at the company, the automaker initially faltered by failing to recruit enough local dealers, neglecting to hire regional experts, and opting not to offer hybrid vehicles in markets where consumers remain cautious about fully electric options.
In response to these early setbacks, BYD has taken decisive steps to recalibrate its approach. The company has expanded its dealership network across key European countries and begun offering generous compensation packages to attract experienced executives from established European carmakers, particularly Stellantis.
Hybrid Vehicles Take Center Stage
The pivot toward plug-in hybrids marked a significant turning point in BYD’s European strategy. This change followed internal guidance from Alfredo Altavilla, a seasoned automotive executive and former Fiat-Chrysler leader, who now serves as a senior adviser for BYD’s European division. Altavilla reportedly convinced BYD’s founder and chairman, Wang Chuanfu, that a full-electric lineup would struggle in several European markets where hybrid models remain more acceptable to consumers.
“Wang immediately understood the need and instructed engineers that every new model in Europe must include both EV and hybrid versions,” Altavilla said in an interview. “The goal is to guide customers gradually through the green transition.”
Altavilla’s influence has been instrumental in reshaping BYD’s strategy. He publicly confirmed in December that plug-in hybrids would become a foundational part of the automaker’s European offerings. At a press event in Italy, he declared that resisting consumer preferences by offering only battery-electric vehicles would be “stupid.”
Talent Acquisition Fuels Strategic Reboot
To execute this revamped vision, Altavilla spearheaded a hiring campaign targeting top talent from European auto giants. Among the notable recruits were several high-performing managers from Stellantis, including Maria Grazia Davino, who now oversees BYD’s German and central European operations; Alessandro Grosso in Italy; and Alberto De Aza in Spain. According to a BYD insider, the new hires received significant salary boosts and the promise of greater professional growth opportunities.
“These were not people we were glad to see go,” a Stellantis executive admitted, highlighting the talent drain that BYD’s aggressive recruitment drive has triggered.
This wave of recruitment signals BYD’s commitment to building a European leadership team equipped with the local knowledge and experience necessary to navigate the continent’s fragmented auto markets.
High Hopes Tempered by Market Realities
In another move demonstrating BYD’s urgency to strengthen its European foothold, the company appointed its second-in-command, Stella Li, to oversee the regional business. Li succeeded Michael Shu, who had previously projected that BYD would secure at least a 5% share of the European electric vehicle market before launching production at its new manufacturing facility in Hungary later this year.
However, the company fell short of those projections, ending 2024 with just 2.8% of the market and 57,000 vehicles sold. While this performance signals growing traction, it remains below internal expectations.
Lessons Learned from a Misjudged Rollout
BYD’s initial approach to Europe appears to have underestimated both the complexity of the region and the persistent consumer hesitation toward fully electric vehicles. The decision not to offer hybrids out of the gate proved particularly costly in markets where charging infrastructure and price sensitivity still favor transitional technologies.
Moreover, the lack of on-the-ground expertise meant that BYD struggled to build trust with dealers and customers alike. Its relatively low brand recognition outside China compounded the challenge.
Executives involved in the European restructuring emphasized that the company had moved quickly to identify its weaknesses and implement changes. Most spoke on condition of anonymity due to the sensitivity of the strategic pivots underway.
While BYD has previously acknowledged difficulties in Germany—the continent’s largest car market—this is the first detailed account from insiders revealing the extent of the company’s challenges and the internal response to course-correct.
A Renewed Push Ahead of European Production Launch
As BYD prepares to open its first European production plant in Hungary later this year, its leadership remains focused on aligning products with local market needs and strengthening its operational base. Analysts suggest the inclusion of hybrid vehicles and experienced regional leadership could help the brand close the gap with established rivals.
Stella Li’s appointment signals a hands-on effort from BYD’s global leadership to ensure success in Europe. By combining strategic hires, product adjustments, and enhanced dealer support, BYD aims to reposition itself as a serious contender in Europe’s highly competitive automotive landscape.
Whether these changes will be enough to propel BYD to its 5% market share target remains to be seen. However, the company’s recent moves indicate a willingness to adapt quickly—an essential trait in a fast-evolving industry where consumer preferences, government policies, and technological innovations continue to reshape the market.
