BYD Plants Roots in Europe: Setting Up Shop in Hungary with a European Hub
BYD Planning to Establish a European Headquarters in Hungary
Get ready for BYD (Build Your Dreams), the pioneering Chinese electric vehicle manufacturer, to make Europe its new home base! The company's chairman, Wang Chuanfu, announced the establishment of a European hub right here in Hungary during an exciting press conference with Hungarian Prime Minister Viktor Orban.
Promising to create an impressive 2,000 new jobs, this new hub will tackle sales and after-sales service, testing, and model development for local markets. BYD's footprint in Hungary already includes a factory opened in Komarom back in April 2016, with another facility currently under construction. Hungary's welcoming attitude towards China sets it apart in the EU's landscape.
Rumors and reports suggest that BYD aims to sell half of its vehicles overseas by 2030. BYD's strategy involves expanding into international markets such as Australia and Germany to escape the intense domestic price competition back home.
With the profits from foreign markets projected to eclipse those from China, BYD is all set to dominate globally. Yet, the company currently has no immediate intentions of selling cars in Canada and the US due to geopolitical complications.
It's worth noting that BYD faces tariffs on electric vehicles imported into the EU. To bypass these, BYD intends to manufacture vehicles within Europe specifically for the European market. In 2021, BYD outranked Volkswagen to snag the top spot in China, the auto industry's largest market. BYD's global sales have skyrocketed, putting them within reach of US giants like Ford and General Motors.
Positioned strategically near Budapest's transport and industrial hubs, the new headquarters will oversee research into intelligent driving assistance and next-generation vehicle electrification technologies, with collaborations lined up with Hungarian universities. The facility is also slated to be a bustling job generator, with estimated employment ranges from 1,000 to 2,000 new hires!
Hungary isn't the only European node in BYD's expansion strategy. The company is constructing a new energy passenger car production facility in Hungary, while plans for a full-scale car plant in Szeged are underway and expected to kick off production by late 2025. BYD also plans to introduce new plug-in hybrids across European markets in 2025, catering to diverse consumer preferences alongside its existing electric vehicle offerings. The company is smartly addressing EU tariffs by increasing local production while expanding its presence through new brands like Denza!
Sources: ntv.de, jki/rts
Going Deeper:
- The new headquarters will be situated near the Danube River, an ideal location for a transport and industrial hub[1].
- The facility will focus on R&D, with a particular emphasis on intelligent driving assistance and next-generation electrification technologies[1].
- BYD plans collaborations with Hungarian universities for joint research initiatives[1].
- A full-scale car plant is under construction in Szeged, scheduled for production by late 2025[5].
- BYD plans to introduce new plug-in hybrids across European markets in 2025[4].
The Community policy of Hungary and BYD have aligned, allowing for the establishment of a European hub focusing on sales, after-sales service, testing, and model development. This expansion is not limited to Hungary, as BYD is also constructing a new energy passenger car production facility and planning a full-scale car plant in Szeged. By doing so, BYD aims to address the EU's finance policies and tariffs on imported electric vehicles, while also positioning itself to compete in the aerospace, transportation, and business industries on a global scale. The strategic collaborations with Hungarian universities in research and development, particularly in intelligent driving assistance and next-generation vehicle electrification technologies, further assert BYD's commitment to innovation and its growth in the European market. [References: 1, 4, 5]
