BYD is set to implement aggressive discounts of up to €16,000 ($18,700) in Europe’s largest automotive market when combined with government incentives, even as dealers raise concerns about residual values and rising inventory levels.
The company’s chief for the German and the Benelux markets, Lars Bialkowski, told Automotive News that the company aims to “become the leading Chinese brand in Germany,” —replacing MG Motors — but also in Europe.
The country chief added that the company is “using targeted incentives to challenge established competitors and accelerate market penetration.”
BYD‘s Atto 2 Boost plug-in hybrid starts at €22,990 ($27,200) in Germany, including a €11,500 ($13,600) discount combined with €4,500 ($5,300) in government incentives.
This makes the model’s discounted price €16,000 — equivalent to $18,900 — cheaper than its list pricing.
However, some German dealers were reported to not fully agree with BYD‘s strategy, highlighting that heavy discounts can weigh on residual values.
They also added that the large volume of the company’s self-registrations — a total of 2,887 were achieved last year, according to research by Automobilwoche — in the last few months is also creating inventory challenges.
Other dealers flagged slow-moving inventory ineligible for the carmaker’s latest purchase premiums and leasing campaigns.
Earlier this month, several media outlets reported that the Chinese automaker plans to expand its dealer network in Europe’s largest automotive market, targeting more than 50,000 annual vehicle sales.
By the end of the first quarter, the company aims to have 190 dealer locations and, by year-end, to exceed 350.
Germany Debut
BYD entered the German market in September 2022, with the launch of Han E-segment sedan, Tang seven-seat SUV, and Atto 3 models — named Yuan Plus in China.
The pre-sale price for the compact SUV in Germany started at €38,000 ($45,000), whereas the E-segment sedan and the seven-seat SUV were priced from €72,000 — equivalent to $85,200.
A month later, the automaker announced that it had begun cooperating with seven key dealers — Hedin, Reisacher, Reiss, Senger, Stern Auto, Stern Partner and Torpedo — to sell its EVs in the country, officially “forming a nationwide dealership network.”
In April 2023, BYD expanded its German portfolio by introducing the Dolphin compact hatchback and the Seal sedan.
The models are currently available from €34,640 ($41,000) and €46,990 (55,600), respectively.
The company’s lineup as of February 2026 in the country also includes the Atto 2 compact SUV, Dolphin Surf hatchback — marketed as Seagull in the Chinese market —, and the Sealion 7 and Seal U midsize SUVs.
Sales in Germany
Last month, BYD sold 2,629 vehicles in Germany, according to data published by Germany’s Federal Motor Transport Authority (KBA).
The figures soared by over 1,000% compared to the 235 units registered in January 2025. However, they declined by 36.0% from December 2025, when the company listed 4,109 EVs.
The company surpassed its direct rival MG Motors, which achieved 1,458 registrations — a 11.4% year over year fall.
Last year, BYD delivered a total of 23,306 EVs in the country, representing a 706.2% surge from 2024’s result (2,891 units).
The Chinese automaker trailed MG Motors, which registered 26,479 units, according to data from the KBA.
In the last four months of 2025, the brand consecutively broke new records for the highest number of vehicles sold in the country since launch.
BYD‘s sales in December jumped 1,172% year-on-year, with battery electric vehicles (BEV) leading at 2,218 registrations —54% of the 4,109 total.
Germany was considered last year’s fourth-largest sales market for the company, representing about one-fifth of its total European vehicle sales.
Meanwhile, the world’s best-selling EV brand last year, BYD will soon commence production of the BEV versions of its Dolphin Surf and Atto 2 models at its plant in Hungary.
