The Chinese car manufacturer BYD is expanding into Germany and is cooperating with local car dealers. Sales figures are currently rather poor, but that could change in the medium term.
The Chinese car giant BYD doesn’t seem to be really well known in Germany yet. “The first question is usually how to pronounce the brand,” says Andreas Knipp, the managing director responsible for BYD at the Senger car dealership group.
He and his employees then explain that the name is pronounced in English to customers who want to look at Chinese electric cars in the Senger store in downtown Cologne.
BYD is pushing into the German market
The Senger Group, which was founded in the 1950s, has been selling cars from the German manufacturers Volkswagen and Mercedes for many decades. BYD joined at the end of 2022. According to Managing Director Knipp, his company wanted to focus more on e-mobility; The Chinese car manufacturer came at just the right time.
“BYD’s battery expertise was the deciding factor for us,” says Knipp. Senger now also operates BYD car dealerships in Dortmund and Bielefeld, and further openings are planned.
The collaboration with car dealers in Germany is part of BYD’s new expansion strategy. The Chinese car manufacturer is pushing into the European market with great pressure. A dedicated freighter brings vehicles from China to Bremerhaven, and BYD is the official advertising partner at the European Championships in Germany.
In China, where Volkswagen has been the market leader since the 1980s, BYD dethroned the German carmaker last year. Could this also happen in Germany?
February: 94 newly registered BYD cars
The sales figures so far are likely to reassure German car manufacturers. According to the Federal Motor Transport Authority, a total of 94 BYD cars were newly registered nationwide in February. Rounded, this corresponds to a market share of 0.0 percent. For comparison: VW sold more than 40,000 vehicles in the same month.
The fact that the Chinese electric car manufacturer’s figures are currently so bad is also due to the fact that the federal government surprisingly canceled the purchase bonus for electric cars in December. But the collaboration with BYD is a long-term decision, emphasizes Knipp.
Expert: BYD will establish itself in Europe
In the medium term, things could definitely get uncomfortable for the German auto industry. “BYD will definitely establish itself in Europe,” says Helena Wisbert, professor of automotive economics at the Ostfalia University in Wolfsburg. BYD itself has set a target of a market share of five to ten percent in the electric car sector for Germany.
The Chinese car manufacturer is already forcing the other manufacturers into a price war. “VW had to follow suit with the price reductions for electric cars,” says Wisbert. “This is a spiral that was triggered by BYD.”
Customers could benefit from price wars
Wisbert certainly doesn’t want to write off German car manufacturers. “The innovative strength is still there in Germany,” she says. In addition, the German brands have a good reputation. The Senger car dealership group also remains committed to its German cars. It’s about diversification, according to the company.
It is clear that things will become tighter on the German market if BYD actually gains a foothold here on a large scale. The price and competition are likely to result in losses for the auto industry. Buyers of electric cars in Germany, on the other hand, could benefit from this.