Last week, BYD's Executive Vice President Stella Li attended the Winter Davos forum for the first time, noting the decision was made so hastily that she didn't have time to arrange for a few BYD vehicles to be showcased in Davos. Even so, Li remained the most prominent Chinese female entrepreneur representative at the entire event, with many seeking to discuss cooperation and request photos—everyone knows her as "BYD's Stella."
Li candidly told me that while watching shuttle buses navigate the snowy Swiss mountain roads, she thought if any car were to drive in the snow, only a BYD would be the most stylish and stable. Within just a few days, Li had already decided to open one or two 4S dealerships in Davos.
Next year, at the Winter Davos, we might witness the spectacular debut of Chinese electric vehicles.
I conducted an interview with Stella Li at the Winter Davos, where we discussed BYD's development strategy and market positioning in Europe, as well as the competitiveness of Chinese EVs within the European electric vehicle market. Although Chinese electric vehicles have advanced rapidly in Europe over the past few years, the journey has involved overcoming numerous challenges, with regulatory and cultural obstacles that are not easily surmounted.
Firstly, Li mentioned that the strategy for the European market is clear: first, establish strong dealership networks in every country; second, work harder to build local social network relationships; and third, continue to introduce more models tailored specifically for Europe—because the European market still holds untapped potential. "The innovation capability of China's automotive industry is very strong, and this strong innovation has shaped many excellent companies that are already seen as being at the forefront of the market from the perspective of other countries," Li told Sina Finance.
—— The European "Full Family Portfolio" Strategy In Li's view, although Europe is a unified market, Eastern and Western Europe still differ; the Eastern European market may be more price-sensitive and has slightly fewer charging stations, thus showing a preference for DM-i, i.e., plug-in hybrid electric vehicles (PHEVs). In some Western European countries, the preference might be split fifty-fifty.
Regarding the common analysis that European electric vehicles are not selling well due to inadequate infrastructure, Li holds a different opinion. She believes European infrastructure is actually better than in many countries, with a sufficient number of charging points—they are just not efficient enough. For instance, there is a shortage of flash charging stations. Therefore, BYD will vigorously build flash charging stations in Europe this year to serve the entire EU market. "With the flash charging stations, our first matching vehicle will be the Denza, which has flash charging capability. A major selling point of the Denza is its parallel parking feature, which suits the needs of Europe's narrow streets," Li said. "So BYD calls it the 'Full Family Portfolio.' For example, the Dolphin Surf is the most affordable, entry-level electric car. Then, all the way up to the Atto 8, which is the most premium electric vehicle—we have a full series covering all price points," Li said. "BYD's strategy in Europe is to achieve comprehensive coverage across all vehicle segments, and over the past few years, we have specifically defined several models tailored for Europe. These vehicles haven't been launched yet; after they hit the market, market acceptance will be greater," Li said.
—— Always Focus on the Consumer We discussed the uncertainty brought to automakers by shifts in EU policy. The most typical example is the back-and-forth on the European ban on new internal combustion engine vehicles.
In October 2022, the EU decided to ban the sale of new carbon-emitting cars and vans from 2035. Then, at the end of last year, three years later, a new plan was adopted, adjusting the 2035 "zero-emission" target for new cars to a "90% reduction" compared to 2021 levels.
Regarding such policy fluctuations, Li feels "it doesn't matter." Because ultimately, "it's the consumers who pay. Our main focus is to listen to the consumers' voices, see what products they like, and then define products accordingly. We address whatever concerns they have." "For example, take our flash charging. Many potential pure EV buyers think charging is too slow; they can't wait half an hour. So we introduced a one-megawatt flash charger that adds 400 kilometers of range in five minutes—making charging as fast as refueling. Then they have no more concerns." "Some users are distrustful of pure electric vehicles; then they can try our hybrids. On a single charge and a full tank of gas, you can drive 1500 to 2000 kilometers." "When no one can surpass us, consumers will buy your car. They will even get very excited because you have brought them all these different user experiences. They will feel that your car truly touches their hearts and solves their biggest concerns," Li said.
—— Germany Removes Origin Restrictions on EV Subsidies Coupled with Canada's recent announcement of an annual import quota of 49,000 Chinese electric vehicles, subject to only a 6.1% Most-Favored-Nation tariff within the quota, the beginning of 2026 has brought many positive signals for Chinese EVs.
For instance, Germany recently reinstated subsidies for electric vehicles, offering families purchasing new EVs a subsidy of up to 6,000 euros, aiming to boost its domestic electric vehicle industry. Following the 2023 reinstatement, this new German subsidy will not impose controls based on the country of origin.
Commenting on this, German Environment Minister Steffi Lemke stated there is no evidence suggesting a massive influx of Chinese cars and expressed confidence in the competitiveness of local brands.
Regarding these new international developments, Li was forthright: "They should have done this a long time ago. Compared to them, China is now more open. An open market encourages everyone to compete. Your own enterprises must participate in competition; if you don't compete, you're doomed." She said it's like a competition; you participate, and if you lose today, you come back to win tomorrow, or the day after if not tomorrow. "The Chinese market has gone through brutal competition. Under such competition, you are forced to constantly create, change, and innovate. The strong innovative capability of China's auto industry has created many excellent companies that, from the perspective of other countries, are already at the forefront of the market."
As for investments in new markets, Li believes they still need to examine the specific terms. "Because once BYD invests, we must ensure success. Once we invest, we need to see if it is sustainable for the next ten years, rather than changing our investment strategy due to temporary policy shifts." "We are very cautious. Once we decide to do something, it means we have already completed all the market research. Once we act, we must succeed; failure is not an option."
—— The Hungary Factory is the Strategic Rear Base for the European Market Li provided a detailed explanation of the strategic positioning of the Hungary factory, stating, "The Hungary factory is the strategic rear base for the European market. The first car we announced for production there is the Dolphin Surf, the second is the Atto 2—we will manufacture these vehicles in Hungary."
Regarding international expansion for enterprises, Li believes BYD is inherently an international company and not a traditional automaker: "Our strategic logic is to define our strategy through technology." "BYD has its own technology. We are strong enough ourselves, and our market capabilities are also strong, so we stick to our own path. BYD is different from other companies; we are a technology-driven enterprise." "We have nearly 1 million employees, with 120,000 being R&D engineers. We file 52 patents every day. Among automakers worldwide, the number of employees in our R&D department is double that of the second-ranked company. It might even be three to four times the number of R&D personnel in companies from other industries."
This determines that we operate like a lone ranger in the market, with our own strategy and without engaging in price wars with others. "Because for us, if you only target the lowest price, you might achieve higher sales in the short term, but in the long run, it greatly damages the brand."
Li believes that, ultimately, in any market, "BYD must deliver a user experience—that's what I care about. The product must surprise the customer, have a 'wow' effect, and include some cool features. Then, after-sales service must provide five-star service. Selling one car means making a friend, a friend for life." "With such service, your reputation will gradually improve. Especially in Europe, customer loyalty and trust in you will be enhanced," Li told Sina Finance.
This is the fundamental approach to deeply cultivating the European market.
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