BYD Dismisses EU Tariff Concerns, Confirms European Expansion
Economy / Finance

BYD Dismisses EU Tariff Concerns, Confirms European Expansion

Chinese electric vehicle manufacturer BYD has refuted reports suggesting a shift in its European production strategy, indicating a preference for Turkey over Hungary. Maria Grazia Davino, BYD’s head of European operations, confirmed to the “Tagesspiegel” newspaper that the company remains committed to its previously announced plans for ramping up production at its new factory in Szeged, Hungary.

Reports had surfaced alleging that BYD was considering Turkey due to lower labor costs, potentially delaying the mass production timeline at the Hungarian facility and operating at reduced capacity for the initial years. Simultaneously, BYD is constructing a new, multi-million dollar production plant in Manisa, Turkey.

Davino dismissed speculation that potential EU import tariffs on Chinese electric vehicles might cause a strategic reevaluation for the company. “Europe is a very important market for BYD” she stated, referencing both sales figures and the decision to invest in local production. She emphasized that such tariffs would not impact internal sales and marketing discussions.

BYD’s market entry in Germany experienced a slower start than initially anticipated, with sales reaching 6,323 new vehicles in the first half of the year. Davino acknowledged the importance of volume for BYD’s ambition to become a relevant brand in Europe, stressing that achieving this will require time.

Looking ahead, BYD also intends to broaden its focus beyond solely battery-electric vehicles, placing greater emphasis on hybrid powertrains, specifically range-extender plug-in hybrids which combine electric power with a combustion engine. Davino indicated that these hybrid models will remain a key focus for the company’s European strategy.