BYD Plans 2026 Launch of Smallest PHEV Hatchback for European Market

Chinese automotive manufacturer BYD is preparing to introduce a new plug-in hybrid (PHEV) hatchback specifically designed for the European B-segment, targeting a market launch in 2026. This forthcoming model is projected to be the smallest and potentially the most affordable PHEV available in the United Kingdom, signaling a strategic shift toward developing vehicles tailored for continental consumer preferences. The introduction of this model was confirmed by BYD Executive Vice-President Stella Li, and it represents the company's first vehicle conceived expressly for European requirements, contrasting with the current lineup largely adapted from the Chinese domestic market.

The new vehicle is slated to measure approximately four meters in length, positioning it directly within the B-segment, commonly known as the supermini class in Great Britain. This model is expected to utilize BYD's established DM-i hybrid technology, drawing architecture from the Atto 2 DM-i crossover. The Atto 2 DM-i powertrain features a 1.5-litre four-cylinder petrol engine, which achieves a thermal efficiency of 43.04%, coupled with an electric motor system that reportedly yields 259 brake horsepower and a weighted combined fuel consumption figure of 156 miles per gallon. This new hatchback will enter direct competition with established full-hybrid models such as the Toyota Yaris and the Renault Clio, which currently hold significant market share in this high-volume segment.

Stella Li emphasized the strategic importance of this dedicated European model, noting that the PHEV hatchback segment currently lacks a direct equivalent in the Chinese market, thereby necessitating a specific design effort for Europe. This development is part of BYD's wider expansion of PHEV offerings across the continent, which already includes models like the Seal U DM-i and the forthcoming Seal 6 DM-i Touring. By offering a lower-cost PHEV option, BYD aims to attract buyers who might otherwise choose full-hybrid or traditional internal combustion engine vehicles, providing an electric-focused driving experience without range concerns associated with battery-electric vehicles.

The timeline for the hatchback's introduction is closely linked to the ramp-up of BYD's manufacturing operations in Europe. The company's first European assembly plant, situated in Szeged, Hungary, is intended to help mitigate potential additional European Union import tariffs beyond the standard 10% customs duty. Official statements indicate that trial manufacturing at the Szeged facility is scheduled for the first quarter of 2026, with full-scale production commencing in the second quarter of that year. The Hungarian plant is set to initially assemble the Dolphin Surf EV, followed by other models like the Atto 3, with the new B-segment PHEV hatchback anticipated to enter production there following these initial battery electric vehicle runs, solidifying the facility's role as the production hub for BYD's Europe-specific vehicles.