Cars: one in five in the EU is electric. BYD boosts its revenue through exports

Not even Byd is a ‘prophet in his own land’. The Chinese manufacturer’s return to profit in the first half of the year, following five consecutive quarters in the red, is entirely down to a 34 per cent rise in revenue, driven entirely by overseas markets, whilst the Chinese market – the largest in the world – recorded a 31 per cent decline. For the first time in BYD’s history, revenue from outside China exceeds that of the domestic market, now accounting for 53 per cent. “The Chinese automotive industry has entered a phase of profound adjustment and divergence, characterised by weak domestic demand and robust export growth,” reads the half-yearly report. “The group’s momentum for overseas growth will continue to gain traction.”

On Monday, BYD’s shares fell by 5.2 per cent in Hong Kong, their biggest drop in four months: the 2026 sales targets are still a long way off and some investors have focused on certain risks, such as the possibility of new tariffs from the EU. BYD’s overseas turnover of over 12 billion euros is closely linked to a scenario in which the electric transition of the European car market is, month after month, becoming increasingly structural. One in five cars registered in Europe is now electric. Figures for the first half of the year in the European car market (and those for July too) confirm this boom, driven in part by fears of rising fuel costs due to the conflict in the Middle East, with sales of BEV models up 28 per cent month-on-month and 31 per cent year-on-year. This growth is being driven by the three main markets: Italia (+75.7 per cent), France (+55.4 per cent) and Germany (+40.9 per cent). Contrasting with the electric boom are the figures for traditional petrol cars, with registrations in the EU down by 18.2% since the start of the year. It was a success story in which all manufacturers participated without exception, with Volkswagen managing to retain its European leadership overall (despite a 1.2 per cent decline), flanked in second place by the brilliant performance of the Skoda brand (+8.5 per cent), whilst Toyota came third thanks to strong sales of its full-hybrid models (+11.2%).

But it was the Chinese manufacturers who capitalised on the boom to the greatest extent. Together, the five leading Chinese groups (BYD, SAIC Motor, Geely, Chery and Leapmotor) recorded year-on-year growth of 65 per cent, surpassing the sales volumes of their Japanese counterparts (Toyota, Honda, Nissan, Suzuki, Mazda and Mitsubishi). And in July, according to figures from the China Passenger Car Association, total overseas sales soared by 88 per cent. In Europe, this acceleration is linked in particular to electrified ranges, which have benefited most from renewed government subsidies in Northern Europe, whilst Japanese manufacturers’ line-ups are less focused on battery-powered cars. As well as consolidating growth in sales volumes, however, China is rising to the challenge of margins and profitability, reaping the maximum benefits from the ecological transition of the continent’s vehicle fleet, unlike traditional European manufacturers, who find themselves with their backs against the wall, forced to revise their profit forecasts downwards and restructure their costs due to price pressure (as demonstrated by recent decisions by Volkswagen, BMW and Mercedes). More specifically, BYD saw its registrations in the EU more than double (+152.9 per cent) in the first half of the year, driven in part by promotional initiatives specifically designed to protect margins. Chery (which markets the Omoda, Jaecoo and Jetour brands) is the group that has managed to generate the highest percentage growth in Europe since the start of the year (+267.1 per cent), thanks to the success of its compact SUVs, which are, once again, positioned in highly competitive price brackets. Leapmotor, for its part, has recorded consistent growth since the start of the year (with monthly peaks exceeding 440 per cent), optimising its cost structure by sharing Stellantis’ European logistics network.