Stella Li, the vice president of Chinese electric vehicle manufacturer BYD, has sharply criticized the European Union’s planned local content quota. Speaking to “Der Spiegel”, Li described the proposed regulation as “crazy” “difficult to implement” and something expected to harm many companies, generally arguing that political regulations should stay away from the automotive industry.
The local content rule is part of the “Industrial Accelerator Act” which was introduced by the EU Commission in early March. Under this proposal, electric, hybrid, and fuel cell vehicles would only qualify for state subsidies if they are assembled in the EU and if a minimum of 70 percent of their components, measured by price, originate from EU manufacturing.
Although Li expressed strong disapproval of the initiative, she was highly confident that BYD could meet the specified requirements if necessary. “If our competitors can manage it, we can do it” she asserted.
In response to the proposal, BYD is actively expanding its European manufacturing capacity, with a facility under construction in Hungary and plans for another site in Turkey. According to earlier reports, the group intends to localize the production of all EVs designated for Europe by 2028. However, it remains unclear whether these expansion plans will be sufficient to satisfy the anticipated quota.
The EU Commission defends the move by citing the need to protect the continent’s industry. Representatives from major European manufacturers, such as Volkswagen and Stellantis, have recently shown openness toward similar localization mandates. Critics, however, warn that such measures could lead to increased costs, more complex supply chains, and potential backlash from other global regions.
