According to German media, China manufacturer BYD may have chosen Hungary to build its first electric vehicle factory in Europe. This is an important step in the expansion of this Asian giant, aiming at bringing production closer to demand and reducing delivery time and cost.
At present, the announcement has not been officially released, and the information disclosed by frankfurter allgemeine zeitung comes from anonymous sources closely related to the company. According to the official website of China, Hungarian Prime Minister Orban Victor recently visited BYD’s headquarters in Shenzhen, China, and met with Wang Chuanfu, the head of the company. Orban visited China in mid-October, and he was one of the few European delegates attending the 10th anniversary summit of China’s “New Silk Road” trade project. The construction of the factory will mean that the Hungarian government has taken another step forward in the modernization of the country and is also an important source of employment for Hungarian citizens.
Similarly, Hungary is also an option that BYD is very interested in, which has many advantages. Setting up a factory in EU member countries will allow China manufacturers to sell the products produced by this factory in its 27 constituent countries without paying import duties. This is essential to remain competitive in the European market, especially in the case that the tariffs on vehicles imported from China may increase in the next few years.
In this regard, BYD said that the factory site selection is still in progress and it is expected that a decision will be announced at the end of this year. In addition to determining the location of the factory, BYD should also announce the implementation time, estimated production capacity, and which models it is responsible for producing. BYD is currently the world’s largest manufacturer of plug-in cars and the second largest manufacturer of pure electric vehicles, second only to Tesla. All forecasts also show that BYD will eventually surpass the American company in 2024 due to its expansion into markets such as Europe.
Post time: Nov-07-2023