Chinese electric vehicle manufacturer BYD is poised to construct a third factory in Europe, a move that underscores its ambitious global expansion strategy. This expansion occurs amidst the backdrop of the European Union’s tariffs on Chinese-made electric vehicles, and Brexit Britain might be left out.
BYD, already the world’s leading EV manufacturer, is actively seeking to bolster its presence in Europe. A decision regarding the location of this new plant is expected within the next 18 to 24 months, according to BYD Executive Vice President Stella Li, speaking in Frankfurt.
This expansion follows BYD’s earlier moves to establish manufacturing bases in Hungary and Turkey. Production is slated to start later this year at the Hungary facility, while the Turkish site is also under development. Once operational, the combined capacity of these two factories will reach 500,000 vehicles annually, helping BYD sidestep costly import tariffs imposed by the EU. This strategy will establish a more solid presence in the lucrative European EV market.
The company is also considering establishing EV battery production facilities in Europe to further enhance its development across the continent. “The location of a potential site and timing are still being discussed,” Li said, referring to the battery production plans.
However, the likelihood of a new BYD factory being located in the UK remains low, partially attributable to Brexit. In March 2023, Michael Shu, European President of BYD, stated, “As an investor, we want a country to be stable.” He further noted that the UK did not even make the company’s top 10 list of potential sites. The executive’s comments highlight the company’s reluctance following the UK’s departure from the European Union.
BYD has already strengthened its position as China’s leading entrant in the European market. This is evident as they outsold MG, a subsidiary of SAIC Motor, by 44 per cent in January, according to data from auto research group Jato Dynamics. This success comes despite a general slowdown in demand for electric vehicles across Europe. To support its European push, BYD has been actively recruiting, reportedly hiring executives from Stellantis.
