Chinese automaker BYD announced on Friday that it plans to build a new electric vehicle factory in Hungary, its first car factory in Europe, as part of its rapid global expansion.
BYD said in a notice on its social media Weibo account that Hungary will become the center of its European operations.
BYD, based in the southern Chinese city of Shenzhen, said it plans to create thousands of jobs in building a local green ecosystem for electric vehicle manufacturing. The factory will be equipped with advanced production lines and will be built in stages, the company said, without disclosing details of the investment amount.
BYD is one of the fastest-growing EV manufacturers in Europe, and European regulators have begun investigating the Chinese government’s support for the industry. The company’s name stands for “Build Your Dreams,” and it began direct sales of EVs in Hungary in October.
The company plans to launch three new models in Europe within the next year, in addition to the five models it already sells, including sedans, hatchbacks, and SUVs. BYD has 230 stores in 19 European countries.
The factory will be located in Szeged, in southern Hungary, near the Serbian-Romanian border. This third largest city in Hungary is a center of education and technology. BYD also has a bus manufacturing facility in Hungary.
BYD is at the forefront of a wave of Chinese electric vehicle exporters leveraging rapidly evolving technology and low prices to compete with Western and Japanese brands in their home market.
BYD has led sales of so-called new energy vehicles, or EVs and hybrid vehicles, in China this year, accounting for one-third of China’s total car sales. According to BloombergNEF’s EV outlook released in June, 35% of cars sold in Germany and 90% in Norway in the first half of 2023 were EVs.
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First published: December 22, 2023 | 4:18pm IST