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Chinese electric-vehicle company BYD said on Friday it will build an assembly plant in Hungary, its first production facility for battery-powered cars in Europe and the latest sign of the company’s ambitious plans to expand beyond Asia.
BYD is already the world’s largest maker of electric vehicles, most of them sold in China, and has begun opening dealerships in Europe as it aims to expand sales globally. Last year it sold 1.86 million battery-powered cars, including plug-in hybrids, which have both electric motors and gas-powered engines. It overtook Tesla, which sold 1.3 million electric cars in 2022.
The new production facility will be in Szeged in southern Hungary, BYD said in a statement. The plant will create “thousands of local jobs” and promote “technological exchanges and innovations between China and Hungary”. But there were no details about the size of the plant, how much money BYD will spend, or when construction will begin.
US and European automakers, which are increasingly spending billions to retrofit their plants to make more electric vehicles, are well aware of the threat posed by BYD, Nio and other Chinese car companies. China is the world’s largest automobile market, and domestic companies have taken advantage of government support to invest heavily in the technology.
In a display of its growing muscle, seven Chinese-made cars were showcased at the Munich auto show in September, where BYD unveiled a sleek new sedan and a sport utility vehicle to thunderous applause.
European lawmakers recently launched an investigation into whether Chinese automakers received government subsidies, a move that could lead to tariffs being imposed by the EU. European Commission President Ursula von der Leyen said, “Europe is open to competition, not a race to the bottom.” “We must defend ourselves against unfair practices.”
European automakers are responding to the challenge. Volkswagen has invested heavily in China, where it was once a sales leader. And VW was reported by German newspaper Handelsblatt to be in preliminary talks with Renault about building a low-cost electric vehicle.
Hungary’s prime minister, Viktor Orban, visited Shenzhen, home of BYD, in October. According to the Shenzhen government website, he visited BYD headquarters and said, “Hungary welcomes Chinese-funded enterprises and has a strong desire to cooperate with you.” For years, Mr. Orban has looked to countries like Russia and China for economic investment.
But another big Chinese project in Hungary, a $7.8 billion plant for CATL, the world’s largest maker of electric car batteries, has not always gone smoothly. Public hearings drew anger over concerns about pollution, reduced water supplies, and an influx of Chinese and other foreign workers.
claire fu, melissa eddy And keith bradsher Contributed to the reporting.
