BYD to join ACEA?

ACEA includes all automotive manufacturers selling sedans and SUVs in Europe and in a move said to have divided the members, BYD has applied to become the first Chinese automaker to join the lobby organization. ACEA prepares industry positions for negotiations with the European Union on subjects like tariffs, emissions standards, and electrification. No word yet on whether BYD’s application will be accepted.

BYD’s announcement that it will spend about €2 billion ($2.3 billion) to build five-minute ”flash-charging” stations across Europe is a move reminiscent of Tesla’s Superchargers, which provided a powerful incentive to buy its EVs. BYD has said it plans to install 20,000 flash chargers in China by the end of this year and 3,000 in Europe by 2027. According to the Financial Times, the Z9 GT can be 70% charged in five minutes and almost fully charged in 12 minutes. BYD said it wants to make the technology available to all its mass-market vehicles.

Earlier this month, BYD chairman Wang Chuanfu told Reuters he still expects the company would become the world’s largest automaker within five years. He made the claim after BYD’s share price fell sharply. It has dropped 45% over the past year in Hong Kong. Last year BYD was ranked sixth in the world with sales of 4.6 million vehicles. In 2025, the world’s biggest carmaker Toyota sold more than 10 million vehicles.

BYD profits more than halved

Chinese automakers are suffering from excess competition in their home markets and view export sales as a lifeline to profitability. BYD’s first quarter results showed profits more than halved. Prices in markets like Europe can be up to 100% higher. Analysts say EV sales outside of China can generate net profits of up to $3,500 a car, up to four times as much as sales in China.

In a recent report BMI, a Fitch Solutions company, said pressure on BYD’s profit margins had intensified.

“BYD is focussing on overseas expansion, selective premiumization of mass-market models and broad portfolio coverage to support pricing and profitability, while leveraging its strengths in batteries, intelligent driving and manufacturing integration,” the report said.

“We believe that BYD’s second-generation Blade Battery and fast-charging infrastructure rollout could strengthen its competitiveness in Mainland China and overseas, where charging convenience and affordability remain important for EV adoption,” BMI said.

EU auto tariffs

The European Union has introduced what it called anti-government subsidy tariffs raising the maximum combined duty to as high as 45.3% on Chinese EVs, including the standard 10% car import duty.

This has led to a wave of Chinese plans to make cars in Europe. MG has announced a new plant in Galicia, Spain. Chery will take over the surplus assembly line at the Nissan Sunderland plant. Stellantis will make Leapmotors in Spanish plants and BYD is building a factory in Hungary.

BYD’s factory in Hungary is thought to be about a year late. It will have a capacity of 300,000 vehicles a year and is expected to start with the entry-level Dolphin Surf later this year.

Analysts said the delay in starting the Hungary plant might be because BYD is unsure of the outcome of the EU’s local content requirement proposal.

Progress even in Germany

Investment bank UBS said BYD has benefited from strong EV demand in Europe and now has an EV market share in Europe of about 9%.

“(BYD is) making progress even in laggard markets for Chinese (manufacturers) like Germany. With domestic demand under continued pressure in China, we think Chinese (manufacturers) will likely keep pushing exports and localization in overseas markets, with Europe remaining the largest accessible market,” UBS said in a research note.