BYD Considering a Third European Factory While Constructing Its First Two | Carscoops

      Manufacturing vehicles in Europe will enable BYD to avoid tariffs recently imposed by the EU.

      BYD’s executive vice-president stated that a decision will be made in 18-24 months.

      The initial two factories of the Chinese company will have a total production capacity of 500,000 units.

      In October of last year, the EU instituted an additional 17.4% tariff on BYD.

      Last year, BYD Group achieved significant sales of 4.27 million EVs and PHEVs worldwide, positioning itself among the largest car manufacturers. Its vehicles are highly popular in China and its international reach, particularly in Europe, is expanding. BYD is considering further production growth in the region.

      In a recent interview in Germany, BYD executive vice-president Stella Li mentioned that the company will make a decision on establishing a third manufacturing facility in Europe within the next 18-24 months. If this new plant is approved, it would enhance the company's market presence and help bypass the EU tariffs recently imposed on them.

      In October, the EU added a 17.4% tariff on BYD following an extended investigation into the subsidies provided by the Chinese government to local automakers. This new tariff is in addition to the existing 10% import duty on vehicles, which diminishes BYD's competitive pricing advantage compared to several competitors. Establishing European plants will be crucial in addressing this issue.

      Li did not specify potential locations for a possible third production facility during her discussion with the media, as reported by Reuters.

      Currently, BYD is constructing a large factory in Hungary, expected to commence operations later this year, with an annual production capacity of up to 350,000 EVs and PHEVs. Additionally, BYD finalized a $1 billion agreement to establish a manufacturing site in Turkey, which will have the capacity to produce 150,000 vehicles each year and is projected to generate approximately 5,000 jobs when production starts in late 2026.