Dolphin Spurs BYD sales, but negatives may encourage Europeans

The world’s leading electric vehicle maker, BYD, is boosting sales in Europe with the Dolphin, but as the appearance of this small hatchback from China gathers strong evidence, it suggests that domestic manufacturers needn’t worry too much.

Certainly the challenge is massive and impressive. China has invested billions of dollars in creating an automotive giant to challenge the traditional leaders in the US, Japan and Europe. Its EV manufacturers are said to have a 30% cost advantage. The supply of many important minerals is currently monopolized by China.

There are a number of Chinese automakers already gaining sales in Europe, currently led by SAIC’s MG, including Geely’s Polestar, Smart and Zeekr brands, Great Wall Motors’ Xpeng and ORA. BYD is likely to be the most significant new entry, especially when its Hungarian plant begins production later this year. Another factory is planned for Turkey. This production will avoid the huge tariffs imposed by the European Union on Chinese electric vehicles and the regular 10% import tariff. BYD is likely the biggest Chinese presence and has premium brands to follow such as Yangwang with its large SUVs and supercars and the Denza Z9 GT.

The first BYD EVs to go on sale in Europe, the Atto3 compact SUV, the high-speed Seal sedan and now the more affordable Dolphin are wowing buyers with their exceptional quality, style, acceleration and prices. But all exhibit poor high-speed navigation skills on automatic roads.

Europe has an extensive autoroute network where the speed limit is just over 80 mph. High and stable legal speeds are important. In Germany, some sections of autoroutes have no speed limit. Current EV technology performs well at speeds up to 55 mph, but much higher than that range it evaporates quickly. The Tesla Model 3, at close to 200 miles, has more than double the highway range of these BYDs, but a cheap conventional diesel could probably double that.

The BYD Owners section on Facebook is full of frustrated new BYD Dolphin owners, confused by their clunky computers that promise a lot but mask a lot of basic functionality. The dealer operation should step in quickly and fix this.

Matthias Schmidt, founder of Schmidt Automotive Research, said BYD’s plans for Germany have stalled as sales of electric vehicles fell after government incentives were removed. UK sales are taking a hit. The UK has not yet adopted the EU tariff plan for EVs and is now the leading market in Europe for EVs.

Despite a slow start, BYD has climbed to the top of Chinese sales estimates.

“BYD has been the number one Chinese brand, with EVs delivered across Western Europe for the past two months outstripping MG during October and November, but we remain disappointed with their pace of release. Only 40,000 models delivered across Western Europe during the first 11 months of the year, giving it less than 0.5% of the total new car market,” Schmidt said in an email.

Jamel Taganza, vice president of French automotive consultancy Inovev, said that despite the slow start, BYD has a long-term approach to developing the European market.

“BYD’s objective is clearly to dominate by volume in Europe, and that means addressing the mass market,” Taganza said.

Currently, EV sales in Europe are being held back by the lack of a truly affordable small car. The cheapest EVs cost around €15,000 ($15,600), but most sales start closer to €30,000 ($31,200). In China, BYD has the Seagull, a basic small car that sells for well under 10,000 euros ($10,400 after tax). Europeans have ignored this basement area of ​​the market. Industry experts suggest that BYD’s factories in Hungary and Turkey could produce the Dolphin Mini, a European version of the Seagull. This could light a fire under European EV demand and seriously embarrass European manufacturers.

“In the next 2-3 years, we can expect the ATTO3 and Dolphin to still be the two best-selling vehicles. After that, but longer term, maybe the Seagulls will be in the top three. However, it will strongly depend on the overall market shift towards EVs in Europe, which depends not only on the car manufacturers’ offer, but also on the charging infrastructure,” Taganza said in an email exchange.

BYD has recently launched the ATTO2 in Europe.

There’s an elephant in the room that threatens BYD and China’s EV plans in Europe, and it’s geopolitical, not economic.

China electric vehicle industry expert Michael Dunne in a Dunne Insights article titled “BYD: So Damn Good – But Not Invincible” traces its rapid development with sales increasing 10 times since 2020 from 400,000 to more than 4 million in 2024, including hybrids. BYD wants to export 800,000 cars this year, up from 400,000 in 2024.

Despite this success, Dunne says legendary investor Warren Buffett, the chairman and CEO of Berkshire Hathaway, has been slowly selling shares in BYD and now holds less than 5%. Dunne also said Buffett sold all of his shares in Taiwan’s TSMC, the world’s largest and most profitable chip maker. Dunne quotes Buffet explaining why, saying “I don’t like the location.”

This raises the question, often ignored by those who say the Chinese economic onslaught of the European auto industry is unstoppable. China is said to have models in Taiwan. What happens to her global economic plans if she puts it into action?

The Western reaction to an invasion would certainly be dramatic and could end China’s incredible success story in its export markets. This suggests that Chinese action on Taiwan is unlikely.

BYD Dolphin Comfort

Electric motor – 201 hp

Battery – 60.4 kWh LFP

Torque – 310 Nm

Claimed range – 267 miles (WLTP)

WintonsWorld test range – average 253 miles (5 charges)

Lack of battery – 5.2%

Penalty for cruising on the highway – 64.2%

Highway cruising range – 90.6 miles

Steering – front wheels

Acceleration – 0 to 60 mph – 6.6 seconds

Top speed – 100 mph

Price – £30,000 ($37,000 after tax)