BYD evaluating a second car factory in Europe
According to a report from France 24, BYD is scouting a location for its second passenger car factory in Europe. Stella Li, the VP for the company’s operations in Europe and the Americas, told AFP that it will invest in the next manufacturing facility “when the time is ready.” Just last month, a media report claimed that BYD is in high-level talks to establish a factory in Turkey.
Capitalising on the European Union’s push for zero-emission vehicles, Chinese automakers have started accelerating EV launches in the region. Now that the EU has threatened them with increased tariffs on imports, they are working on localising their vehicles in the region.
In December 2023, BYD announced it plans to build a plant for new energy vehicles (EVs and PHEVs) in Hungary. A month later, it signed an agreement with the Hungarian government for the same. Located in Szeged in the southeastern part of the country, this plant will be the first passenger vehicle manufacturing facility in Europe by an established automaker, BYD said in the announcement about the update.
Li told AFP that BYD will start manufacturing cars at its upcoming Hungarian factory by the end of 2025. The company is yet to disclose which models it plans to localise in Europe. Currently, it offers six EVs, namely Dolphin, Atto 3, Han, Seal, Seal U, and Tang. Seeing the demand for semi-electrified models soaring as the EV hype cools down, the company has started launching plug-in hybrids as well. Just last month, it introduced the Seal U DM-i as its first such model in the region.
EVs imported from China attract a 10% import duty in the EU nations. According to a recent report from Euronews, the EU may hike that tariff to 25% and roll out at least a provisional hike as early as next month. Li said that a tariff hike would prove that Chinese cars “are very competitive, accessible” and elevate their image. BYD is present in 20 countries in Europe and has more than 250 retail outlets in the region.
3 Comments