The planned facility will focus on producing electric cars and plug-in hybrids, signaling BYD's commitment to intensify its presence in the European market.
Choosing Hungary follows a significant discussion in Brussels a few months ago about scrutinizing state aid for Chinese automakers. Establishing a production base in Europe could help BYD navigate potential import tariffs resulting from these deliberations.
BYD already has ties to Hungary, producing electric buses in Komarom, a city with 20,000 residents. The company plans to expand its regional footprint, selecting Szeged, Hungary's third-largest city with a population of about 160,000, for the new plant. This site will produce both cars and batteries.
Before settling on Hungary, other European countries, including Germany and France, showed interest in partnering with BYD, eyeing economic boosts and new job opportunities. However, Hungary ultimately emerged as the chosen location.
Details and Predictions for the New Facility
Specifics about the size of the planned facility were not initially disclosed by BYD. However, auto analysts from Bernstein Wealth Management forecasted on Friday that the factory would aim for an annual production of around 200,000 vehicles and could be completed within two to three years. There are questions about whether the production site will be fully utilized from the start, with a gradual ramp-up in manufacturing expected.
Experts predict that BYD could become a significant competitor in Europe for volume manufacturers like Volkswagen, Stellantis (owner of Opel), and Renault. BYD is already a market leader in its home market of China.
Source: FAZ
