The race to build affordable electric vehicles (EVs) is intensifying, and China’s BYD Co Ltd BYDDY is charging ahead. Known for its wallet-friendly EVs, BYD has launched its popular Seagull model in Europe under a new name — the Dolphin Surf.

The Seagull has been a runaway success in China, priced around $10,000 and ranking second only to Tesla’s Model Y in 2024 with over 442,000 registrations. Global sales of the model are up 45% this year to 170,000 units. Now, BYD is hoping to replicate that success in Europe.

The Dolphin Surf, though not quite as cheap as its Chinese counterpart, is still competitively priced. Available in Germany in three trims—Active, Boost, and Comfort—it ranges from €22,990 to €30,990 ($26,100–$35,100). A special launch promotion cuts the starting price to just €19,990 ($22,700) until June 30. That undercuts rivals like Citroen e-C3, which starts at €23,300, and puts pressure on other European automakers to step up their game.

Only a few EVs in Europe, such as the Dacia Spring and Leapmotor T03, fall under the €20,000 mark, though several sub-€25,000 models are on the way this year from Renault, Fiat and Hyundai.

BYD’s Dolphin Surf is the company’s 10th model on sale in Europe. The company is making big changes to succeed in the region—expanding its dealer network, hiring local talent, and offering more hybrid options. It plans to enter 12 new European markets this year and grow its sales locations to more than 1,000.

STLA and VWAGY Gear Up for the Budget EV Race

Stellantis STLA and Volkswagen VWAGY are stepping up their EV game as BYD turns up the heat in Europe’s affordable EV market.

Stellantis is making a strong push with the all-new Citroën ë-C3, a compact EV priced around $25,000, aimed at making electric mobility more accessible. The company has also teamed up with China’s Leapmotor to bring the compact T03 EV to Europe at a starting price of €18,900. To further boost its EV portfolio, Stellantis is developing the STLA Frame platform to support longer-range EVs and REEVs.

Volkswagen is also betting big on its upcoming low-cost EV lineup. VW ID.2, launching next year, will be priced at around €25,000. It will be followed by ID.2all, and eventually ID. EVERY1 in 2027—set to start at just $21,500. Volkswagen’s collaboration with Rivian on vehicle architecture and software signals its serious intent to stay competitive in Europe’s value-driven EV segment.

The Zacks Rundown for BYD

Shares of BYD have risen around 74% year to date against the industry’s decline of 1.3%.Zacks Investment Research

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Story Continues

From a valuation standpoint, BYD trades at a forward price-to-sales ratio of 1.21, above the industry. It carries a Value Score of B.Zacks Investment Research

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The Zacks Consensus Estimate for BYD’s 2025 and 2026 earnings implies a year-over-year uptick of 33.7% and 19.5%, respectively. Take a look at how the estimates have been revised over the past 90 days.Zacks Investment Research

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BYD stock currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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