While many automakers are considering what the end of the electric vehicle (EV) era could mean for them, BYD is also looking at moving away from only battery-powered vehicles too. The Chinese giant, Build Your Dreams (BYD) is looking at reassessing its strategy, especially for the European markets. In doing so, BYD is working on a hybrid revolution that could reshape the automotive industry whilst taking into consideration all of the drivers who are not willing to go down the all-electric route.
Europe abandoning the EV era and a strategic decision to move away from EVs
While Europe has always been known for EVs, BYD has looked at the statistics that revealed that EV adoption in Europe is rather fragmented. Maria Grazia Davino, BYD’s head of Central Europe, stated that not all Europeans were eager to drive EVs. In a current interview at the Reuters Automotive Conference, Davino shared BYD’s realization that electric vehicles do not always generate sales.
More or less 37,000 electric vehicles were sold in Europe over the first quarter of 2025. In countries like Germany, EVs are far harder to sell. With tariffs on China-made EVs increasing, the EV market seems to be on rather shaky grounds. Therefore, BYD is looking at alternate pathways. In fact, BYD is considered a dual-pathway. One entails considering fully electric vehicles and the other looks at hybrid offerings.
BYD considering a hybrid alternative
BYD is now looking at two new plug-in hybrids (PHEVs) in 2025 alongside its existing Seal DM-i sedan. Offering this alternative under the DM-i label is a strategic decision to meet customer’s readiness needs. BYD is looking at combustion engines yet again. A secretive investment in facilities in Turkey and Hungary to assemble vehicles is a move that avoids EU tariffs and ensures faster delivery times.
On offer from BYD are not traditional hybrids but DM-i powertains. A smaller combustion enegine is utilized for charging batteries as opposed to its normal function of powering the wheels. In turn, a longer range is promised whilst ensuring that same electric drive feel. BYD is avoiding all of the stress related to infrastructure limitations and ensuring that hybrids created are vehicles in alignment with European sustainability and performance standards.
BYD’s Denza brand is set to launch in cities like Milan and BYD is looking to compete with the likes of leading automakers such as Mercedes and Audi. BYD is catering for the buyer who is on the fence. The target market of BYD’s new Denza Z9 GT is a buyer who requires EV type of performance but is still skeptical about all-electric EVs.
Is BYD retreating from the pure electric mobility route?
While it does seem as if BYD is driving off the tracks away from the pure electric mobility market, BYD is looking to push EVs to those who are on the fence about EVs. In looking at domestic markets alongside Europe, BYD is realizing that hybrids that will sell better than pure EVs due to their lower costs and greater flexibility.
BYD is giving rivals, such as Toyota, something to consider-hybrids and alternate fuel solutions. The way to reach a net-zero emissions status by 2050 does not only require us to consider EVs but to look towards a variety of drivetrain solutions. BYD is speeding up the process and doing just that.
BYD’s big secret unveiled despite being under the radar
While BYD is surrendering on EVs and announced its major decision publically, BYD development remains under the radar. The secret is that BYD seems to be testing a hybrid fuel blend too. The fuel being tested looks at hydrogen-enriched gasoline. Hydrogen injections are used alongside petrol to boost efficiency whilst reducing emissions in the process.
BYD is considering this “H2-boost” alongside its DM-i platform which will ensure a 30%-40% improvement in fuel efficiency over other hybrids too. BYD is not fully saying goodbye to the electrification era, however, BYD is looking towards an electric future evolution. In doing so, BYD is setting the tone for a mobility future with hydrogen in the mix.
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