Szeged, in Hungary, was the location chosen by the Chinese BYD to install its factory on European soil, on the one hand giving up the lower production costs it has in China, but on the other hand getting rid of the obstacles that some European countries may have create – as has already happened in France – access for vehicles from China to the incentives granted to electric cars by the different countries of the Union. This investment proves BYD’s commitment to the Old Continent, unlike what happens with the remaining Chinese manufacturers, who select to continue to produce in Asia and export from there.
BYD is the largest Chinese manufacturer of electric cars, and is also the largest producer of rechargeable batteries, which it supplies to the automotive industry, but also to the cell phone industry, among others. This manufacturer’s growth strategy is solid, supported by a high rate of replacement of new vehicles and large investments in new solutions and technologies. The choice of Hungary was justified by Chinese officials due to the previous industrial relationship with the local government, as they have been manufacturing buses there for a long time, and also have a factory for assembling battery packs.
Regarding the new factory in Szeged, BYD said that it would be “built in phases”, but that it “will mark the new phase of the company’s strategy for Europe” and that it “will constitute a production center”. The builder also states that he intends to “use all his experience in the vertical integration of the supply chain” to create what he calls a “local ecosystem”. However, no date has been announced for the start of production at the Chinese manufacturer’s European factory, nor the models it intends to produce there.
