BYD expansion and service challenges in Europe

BYD is expanding its presence in the European premium automotive market by establishing a dedicated design center in Milan, Italy. Led by Global Design Director Wolfgang Egger, a former head of design for Audi and Lamborghini, the center aims to capture European aesthetic trends to support the Denza and BYD brands. The Milan studio, which employs over 1,200 people, serves as a laboratory for high-end aesthetics and customization, drawing inspiration from proximity to global fashion houses.

The strategy focuses on positioning the Denza brand as a direct competitor to established European luxury manufacturers such as Porsche, Mercedes-Benz, BMW, and Audi. Alongside this design expansion, BYD continues to invest heavily in research and development. In the first quarter of 2026, the company allocated approximately 1.464 billion euros toward R&D, focusing on technologies such as FLASH Charging, the Blade battery, and AI-driven driver assistance systems. This brings the company’s total historical investment in the sector to over 32.397 billion euros.

Despite rapid market share gains in Italy driven by aggressive pricing and high-tech features, BYD and other emerging brands like MG, Omoda, and Lynk & Co face challenges regarding after-sales service networks. The physical infrastructure for repairs remains underdeveloped, leading to long wait times and limited access to specialized workshops capable of handling complex electronic diagnostics and sensor recalibrations. Consequently, the market is increasingly relying on multi-brand certified service centers to provide necessary technical expertise.