Chinese automaker BYD has revealed its intentions to construct a European factory, aiming to make its affordable electric vehicles (EVs) more accessible to European consumers. The company is currently on a growth trajectory, and its first European factory will be situated in Hungary.
However, BYD faces certain challenges, including a new European Union investigation and the need to establish brand recognition to compete with established players like Tesla and European automakers. According to reports in Germany’s Frankfurter Allgemeine Sonntagszeitung, BYD has not yet disclosed specific details regarding the factory’s timing and exact location, and the company has not issued an official statement in response to these reports.
Notably, the European Union initiated a formal investigation to address the influx of low-cost EVs from China into the European market. This 13-month investigation may lead to potential import duties or other trade restrictions. Despite these developments, BYD remains undeterred, with Executive Vice President Stella Li emphasizing the company’s commitment to transparency and information sharing.
BYD’s internal goal is to achieve sales of 3 million plug-in hybrids and all-electric vehicles in the current year, and it is making significant progress in the all-electric segment, challenging Tesla. The company’s recent sales figures contribute to a year-to-date total of 2.37 million EVs sold, putting it firmly on track to meet its 2023 sales target.
BYD made its entry into the European market in 2021, starting with Norway and achieving success with its Atto 3, which became the best-selling EV in Sweden. The company has also established a presence in Germany with 15 dealer locations and plans to expand to 50 in the near future. BYD has further extended its reach through a partnership with rental company Sixt, aiming to supply 100,000 EVs by 2028, all part of a strategy to enhance brand recognition in Europe. The automaker’s next goal is to establish a distribution network in collaboration with traditional car dealers.
Beyond Europe, BYD is making strategic moves in Latin America, with top company executives, including BYD’s chair and founder Wang Chuanfu, exploring opportunities in the region during a recent tour.
