- BYD’s executive vice-president says they will make up their mind in 18-24 months.
- The Chinese brand’s first two plants will have a combined production capacity of 500,000 units.
- EU imposed an additional 17.4% tariff on BYD in October last year.
Last year, the BYD Group sold an impressive 4.27 million EVs and PHEVs globally, establishing itself as one of the world’s largest car manufacturers. Not only are its vehicles incredibly popular throughout its home market of China, but its international presence continues to grow, particularly in Europe. Not willing to rest on its laurels, BYD is pondering further production expansion on the Old Continent.
During a recent interview in Germany, BYD executive vice-president Stella Li revealed that in the next 18-24 months, the company will decide if it needs a third manufacturing plant in Europe. If it does go ahead with a new plant, it would further bolster its presence in the market and allow the brand to skirt EU tariffs recently enforced on it.
Last October, the EU imposed an additional 17.4% tariff on BYD after a lengthy investigation researching how the Chinese government has provided subsidies to local carmakers. This extra tariff comes on top of the existing 10% import duty on cars and takes away part of the competitive pricing edge that BYD has over many of its rivals. That’s where the European plants will come in.
Li provided no indication as to where a potential third production site could be located while speaking with the media, Reuters reports.
BYD is currently building a large plant in Hungary that should begin operations later this year. This site will be able to produce as many as 350,000 EVs and PHEVs annually. Last year, BYD also agreed to a $1 billion deal to set up a manufacturing site in Turkey. This slightly smaller plant will have the capacity to build 150,000 vehicles a year and should create around 5,000 jobs when production begins towards the end of 2026.
