China’s leading electric-vehicle (EV) manufacturer, BYD, announced its plans to establish its first car factory in Europe. The company, backed by Warren Buffett’s Berkshire Hathaway, aims to expand its presence beyond its home market and accelerate its entry into the European EV market.
The size of BYD’s investment in Hungary and the production start date were not disclosed in the announcement, but the company stated that the plant would be developed in phases, generating thousands of local employment opportunities.
With its sights set on surpassing Tesla as the world’s leading EV seller, BYD has been actively focusing on global expansion. The company is currently constructing an EV plant in Thailand and reportedly held discussions earlier this year to acquire a Ford Motor manufacturing plant in Germany. However, Ford later confirmed that an unnamed investor had withdrawn from the deal.
BYD’s entry into Hungary marks a significant milestone in the company’s ambitious global growth strategy. As it continues to make strides in the EV sector, BYD is poised to solidify its position as a key player in the international automotive industry.
The Growing Influence of Chinese EV Companies
The growing prominence of Chinese electric vehicle (EV) manufacturers, such as BYD, has sparked concerns in developed countries. According to The Wall Street Journal, the Biden Administration is currently in discussions about raising tariffs on Chinese EVs. Additionally, the European Union initiated an antisubsidy investigation into Chinese EV makers in September.
BYD’s Market Share
Although BYD does not feature on the European Automobile Manufacturers’ Association (ACEA) list of bestselling car companies in the EU, it has been steadily gaining market share in some countries, including Sweden. Data from the Mobility Sweden automotive association confirms this trend.
Comparatively, Tesla held a 3.5% share of the EU car market in November, as reported by ACEA.
Chinese Investment in Hungary
BYD’s decision to establish a plant in Szeged aligns with Hungary’s ongoing efforts to attract Chinese investments. Notably, Contemporary Amperex Technology (CATL), an EV battery maker, announced plans to invest 7.34 billion euros ($8.08 billion) in Hungary to construct a new facility. Furthermore, Hungary serves as a supply center for Huawei Technologies.
Hungary also hosts factories for renowned carmakers such as Mercedes-Benz, BMW, and Audi.
