BYD's Budget Dolphin Surf Debuts: Is Europe's EV Market Under Fire?

Core Insights - The competition to produce affordable electric vehicles (EVs) is intensifying, with BYD Co Ltd leading the charge in Europe with its new model, the Dolphin Surf [1][5]. Group 1: BYD's Strategy and Performance - BYD's Seagull model has achieved significant success in China, with over 442,000 registrations, making it the second best-selling EV behind Tesla's Model Y in 2024 [2]. - Global sales of the Seagull have increased by 45% this year, reaching 170,000 units [2]. - The Dolphin Surf is priced competitively in Europe, ranging from €22,990 to €30,990 ($26,100–$35,100), with a promotional price of €19,990 ($22,700) until June 30 [3]. - BYD plans to expand its dealer network and enter 12 new European markets this year, aiming to increase sales locations to over 1,000 [4]. Group 2: Competitive Landscape - Stellantis is launching the Citroën ë-C3, priced around$25,000, and collaborating with Leapmotor to introduce the T03 EV at €18,900 [6]. - Volkswagen is preparing to launch its low-cost EV lineup, including the VW ID.2 at around €25,000 and ID. EVERY1 starting at $21,500 by 2027 [7]. Group 3: Financial Performance - BYD shares have increased by approximately 74% year to date, contrasting with a 1.3% decline in the industry [9]. - The company has a forward price-to-sales ratio of 1.21, which is above the industry average, and holds a Value Score of B [11]. - Earnings estimates for BYD indicate a year-over-year growth of 33.7% and 19.5% for 2025 and 2026, respectively [13].