Chinese giant BYD announced on Monday that its luxury brand Yangwang will be expanding to Europe, becoming the first Chinese automaker to enter the top-tier luxury segment in the continent.
The information was confirmed to British media outlet Autocar by executive Vice President Stella Li, who reiterated the launch of the high-end Denza brand in the old continent “early next year.”
Denza made its debut in the European continent at the Milano Design Week, in early April.
Li did not disclose a specific timeline or European markets where either of the brands will launch.
As BYD expands its production footprint, opening its first new energy vehicle (NEV) factory in Hungary, it is yet unclear whether Denza and Yangwang models will be made in Europe or imported from a different plant.
Yangwang debuted two years ago in China, competing directly with brands like Ferrari and Porsche — as the latter’s sales figures keep weakening month per month in the market.
The brand launched with its U8 luxury SUV, an extended-range electric vehicle (EREV) with over 1,000 horsepower.
A few months after, the brand launched its U9 supercar, which can reach a top speed of 375 km/h (230 miles).
The plug-in hybrid SUV is priced from 1,089,000 yuan, equivalent to $151,700, while the fully electric U9 starts from 1,680,000 million yuan, or about $230,400.
The two models were showcased at the Goodwood Festival of Speed last year. Both models will be available in Europe, according to Stella Li, with more models to follow.
The high-performance U7 sedan, which was launched in China earlier this year, is set to be included in the European portfolio.
The model has a 1,300 horsepower and can accelerate from 0 to 100 km/h in about 2.9 seconds. It is available as both a fully electric and a plug-in hybrid model, and is priced from 628,000 yuan ($74,850).
On Monday, BYD reached its 13 millionth vehicle produced, with a Yangwuang U7 rolling off the manufacturing line.
The EU currently imposes a 17.4% import tariff on BYD vehicles, meaning that models are expected to be more expensive in Europe when compared to China.
However, the two blocs reignited conversations around tariffs as global trade tensions rose earlier this year, with the recent US tariff on vehicles and auto parts.
EU Trade Commissioner Šefčovič and China’s Commerce Minister Wang agreed to investigate the possibility of setting minimum prices for the imported EVs as an alternative to tariffs.
China has also agreed to fast-track approvals for qualified rare earth exports to Europe — which had been restricted in May, in retaliation against new U.S. tariffs.
Last week, a group of Chinese automakers — including Nio, XPeng, and Xiaomi— took part in the discussions between the EU and China.
According to the China Chamber of Commerce to the EU (CCCEU), the group discussed US-EU trade, EV tariffs, green policies and investment climate,” with “all sides committed to dialogue.”
