BYD considers third European plant and battery factory
BYD could choose a location for the third vehicle plant in the next year and a half, said BYD manager Stella Li. The head of BYD Europe did not specify when this plant could then go into operation. There is, however, a rough estimate: the company had announced the first European plant in Hungary at the end of 2023, with production due to start at the end of 2025 – which is roughly two years. If BYD were to proceed similarly with the third vehicle plant in Europe, the first car could roll off the production line in the second half of 2028 following a decision on the location in late summer/autumn 2026. However, this is speculation and has not been confirmed.
Stella Li remained vague about another plan. According to the high-ranking manager, BYD is also planning to manufacture batteries for electric vehicles in Europe. However, both the possible location and the exact timing are still being discussed, Li said according to Bloomberg.
With the factory about to open in Hungary, where the Dolphin and Atto 3 are due to roll off the production line at the start, as well as the planned factory in Turkey, BYD has already made its ambitions for local production in Europe clear. With a third site and a battery production facility, the Chinese company would have a significant production capacity in Europe and would be able to offer a range of different models from local production. And with the battery factory, Europe would account for a larger share of the added value.
The logic behind the potentially expanded European production is clear: if the vehicles are built in Europe, neither the regular import duties nor the high special duties on imports of electric vehicles manufactured in China into the EU, which came into force in 2024, will apply. Despite tariffs and/or investments in European plants, the EU market remains attractive for Chinese manufacturers because they can demand higher prices than in China. A fierce price war has been raging there for some time.
BYD has also recently emphasised its ambitions in Europe with several new additions to the European management team: Former Stellantis manager Maria Grazia Davino was appointed Regional Managing Director for Germany, Switzerland, Poland, Austria and the Czech Republic in December 2024, and some country managers also moved from Stellantis to BYD with her. At the beginning of February, BYD appointed a Sales Director for Germany for the first time – a manager from competitor SAIC filled this position.
However, it is clear why BYD is hesitating. Business in Europe has not developed as desired for the Chinese manufacturer, with sales stagnating or even falling again, depending on the brand. However, Bloomberg refers to the January figures from Jato Dynamics, according to which BYD sold 44 per cent more cars in Europe than SAIC, which, with its MG Motor brand, is regarded as the pioneer among Chinese manufacturers in Europe in terms of sales volume.
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