Photo Credit: BYDBYD is preparing to enter one of Europe's biggest small-car battles this fall with the Dolphin G DM-i in the U.K.According to Autocar, the Dolphin G DM-i will be less than £20,000. It'll give budget-conscious drivers another lower-emissions option in a market dominated by models like the Renault Clio and Volkswagen Polo.BYD said it created the new Dolphin G DM-i with Europe as its primary target as it pushes to grow its footprint in the region.AdvertisementAdvertisementThe new hatchback shares its basic model family with the Dolphin Surf EV. But it takes a different approach by using a plug-in hybrid setup instead of going fully electric. That means it can run on battery power for some trips while also using a conventional engine when needed.BYD has not released the full technical breakdown yet, but its setup is expected to be based on the Atto 2 DM-i SUV's system. That layout uses a 1.5-liter gas engine as a generator, and the electric motor powers the front wheels.Autocar stated that BYD claimed the Dolphin G should have a total range topping 621 miles using gas and electric power. More details will likely be available when the vehicle first launches in June.Affordable, cleaner cars remain one of the biggest missing pieces in the transition away from gas-powered transportation, especially in Europe's popular small-car market. A plug-in hybrid priced under £20,000 could give more drivers access to semi-electric options without switching to an EV right away.AdvertisementAdvertisementFor many households, that could mean lower fuel bills if they regularly plug in and use battery power for shorter daily drives. Hybrid vehicles also tend to have reduced routine maintenance needs compared with traditional gas cars, helping drivers save money over time.BYD's new plant in Hungary will likely build the new Dolphin G.That combination of local production, lower pricing, and electrified driving could put pressure on established automakers to offer more efficient, budget-friendly cars of their own.BYD executive vice-president Stella Li stated that she wants the Dolphin G "redefine what customers can expect from a compact car in the electric era."Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.