BYD announces a new smaller and cheaper hybrid SUV, it will cost 25,000 euros and will arrive much sooner than you think

It is no secret that BYD wants to make Europe its own playground. The Chinese have burst into the Old Continent with overwhelming force, although it is not proving to be as easy as they expected. Their idea was to catch up with Tesla and surpass the rest of the continental brands in electric cars. However, the market still does not seem mature enough for that to happen. So the new attempt revolves around plug-in hybrids.

In fact, in case you didn't know, BYD sells more plug-in hybrids than electric cars. Not only in Europe, but also worldwide. Almost 6 out of 10 of their cars registered worldwide are plug-in, but they also have a gasoline engine for support. BYD calls this technology DM-i, short for Dual Mode Intelligent. It uses a gasoline engine and one or more electric motors to generate electric and thermal movement depending on the battery state and the driver's behavior.

We have talked several times about BYD's DM-i. In fact, I was able to test the first two units they brought to Europe. On one hand, the BYD Seal U DM-i that I tested a few months ago. More recently, I have been behind the wheel of the BYD Seal 6 DM-i. During the presentation of this last one, the Chinese announced that in a matter of weeks a new member for the plug-in hybrid family will arrive in Spain. More specifically, it will be presented and launched in mid or late next November. I will tell you what we know so far.

The new model will be the BYD Atto 2 DM-i, which is currently the smallest SUV in the family. The first time the Atto 2, nicknamed Yuan Up in China, arrived in our latitudes, it did so as a reasonably priced electric car. Among the cheapest electric SUVs you can buy, in fact. It offers 177 horsepower, 400 liters of trunk space, and 312 kilometers of homologated range (WLTP cycle). It is not a very high figure, which has clearly hindered its sales in some markets like Spain.

The Atto 2 DM-i will hit the market in November with two clear purposes. The first is to strengthen the plug-in hybrid bet. Since the Seal U DM-i arrived in Europe in mid-last year, it has become BYD's most popular model on the continent. Sales figures alone show that European drivers are currently demanding versatile cars that have a plug but do not depend on their battery to keep moving. The second purpose is to increase the sales of the Atto 2.

This is a car that, due to its positioning, is set to be one of the most important for the company. With its 4.31 meters in length, it sits on the border between segments B and C. Among its rivals are competitors like the Dacia Duster, the Opel Frontera, the MG ZS, or the Citroën C3 Aircross, as well as the new Nissan LEAF, the Volkswagen T-ROC, and the mighty Renault Captur. Undoubtedly, the French is the big rival to beat. The particularity of the Atto 2 DM-i is that it will not have any enemy to face. There are no cars of that size with plug-in hybrid mechanics.

That is where doubts about this model come in. Note that there were similar models with plug-in hybrid systems, but the market has swiftly discarded them. The Captur, the Mitsubishi ASX, and the Jeep Renegade have been the only models in the B-C SUV segment to bet on a mechanics halfway between thermal and electric. The three have achieved the same result: absolute failure. In fact, currently neither the ASX nor the Captur PHEV are sold. The only one that survives is the Jeep, but its sales are merely testimonial.

Why is no one betting on plug-in hybrids in the segment?

The answer is very simple: the price. Plug-in hybrids are expensive to develop. Although they have the advantages of electric and thermal, they also present their drawbacks. Combining an electric motor and a thermal one is costly. Segment B is primarily marked by the selling price. Every euro counts when tipping the balance in favor of the customer. The commercial margin is very narrow, and since PHEVs are more expensive than their corresponding hybrid variants, no one is betting on them in the utility category. The figures do not lie.

Will BYD succeed where others have failed?

That is the big question we ask ourselves and that, surely, BYD is asking itself. The figures are intimidating, but it is true that BYD plays with the advantage of economies of scale. Its plug-in hybrid mechanics and technologies have surpassed the critical point of profitability. The millions of units that BYD manufactures each year allow it to reduce selling prices. Or at least that is how it should be. Once again, it will be the price that determines the success or failure of the Atto 2 plug-in hybrid.

How much should it cost?

Considering the rivals it faces and that the cheapest electric Atto 2 currently costs 30,000 euros, without offers or aids, I estimate that the Atto 2 DM-i should have a starting selling price of around 26,000 euros, before discounting brand promotions and without considering possible aids that the Government may give to drivers. As you may know, plug-in hybrids are subsidized by up to 5,000 euros. 2,500 euros for registration and another 2,500 for scrapping an old car.

This money is not deducted from the purchase value, but the Government returns it to you as a purchase incentive. This return is taxed as income in the next income tax return and therefore must be declared and the corresponding taxes paid. Legal terms aside, I believe that the BYD Atto 2 DM-i will be an interesting bet as long as its price, including brand promotions, is around 22,000 euros (without MOVES). Any figure above that amount will complicate its life significantly.

What can we expect from the BYD Atto 2 DM-i?

In addition to an attractive and reasonable selling price, BYD must compensate its customers with what it already knows how to do. That is to say. A car with a great quality-price ratio. Good quality, plenty of standard equipment, generous space, and the necessary conditions for the Atto 2 to become a versatile tool like any other SUV on the market. I believe all of that is guaranteed. The non-dependence on a plug to move will be a clear advantage, in addition to its ZERO label from the DGT.

Mechanically, we can expect a toned-down version of the current plug-in hybrid systems from BYD in Europe. The least powerful of the current DM-i offers 184 horsepower and 50 kilometers of homologated electric range with a 10 kWh battery. These figures seem perfect for a car that is expected to have an intense urban life. More than enough for day-to-day and adequate for when we move away from the city.

So if we take into account all these factors: power, electric range, quality, versatility, and price, it is possible that the Atto 2 DM-i will succeed where others have failed. The key will be the euros, I have no doubt. If BYD maximizes the budget, it will surely manage to make its third European plug-in hybrid an inexhaustible source of sales that allows it to climb those positions it so desires. If so, it is possible that the plug-in hybrid market in the lower categories will reactivate in Europe. Only time will tell.