BYD announced a plan to build its first electric car factory in Europe, which will be located in Szeged, Hungary. The news comes several weeks after we heard a rumor about the potential investment.
The selection of Hungary is not a surprise, as BYD already was building electric buses in Hungary and the country attracted multiple EV-related investments in the recent years, indicating its strong competitive position in the European Union.
BYD currently offers five all-electric car models in Europe (Han, Tang, Atto 3, Seal, and Dolphin), having 230 retail stores across 19 countries. Within the next 12 months, so basically in 2024, the lineup will expand with three additional models.
The Chinese manufacturer is trying to increase its exports from China as much as possible, but in the case of Europe, it will be supplemented by localized production.
According to BYD, the new state-of-the-art passenger car factory in Hungary will be built in phases and is expected to create thousands of local jobs, boost the local economy, and support local supply chains. It’s worth noting that BYD intends to stick with its highly vertically integrated supply chain, indicating that there will be additional investments in part production.
BYD adds that its electric car factory will be the first of its kind, built by a Chinese automotive company in Europe: “The new production facility will incorporate the most advanced global technology and highly automated production processes to create a leading global new energy passenger vehicle manufacturing facility. The construction of this production center is expected to have a positive impact on the local economy by promoting technological exchange and innovation between China and Hungary. BYD will also utilize its expertise in integrated vertical supply chains to help create a green ‘ecosystem’ locally.”
BYD does not say it directly, but we assume that the new plant will be focused solely on all-electric cars (without the plug-in hybrids, which are part of the mentioned New Energy Vehicle category, too). We say this because Europe is steering away from the internal combustion engine.