BYD to Acquire Unused Factory in Europe to Boost Production
Jakarta (ANTARA) - BYD is reportedly exploring the acquisition of an unused car factory in Europe as a step to strengthen electric vehicle production in the region and avoid import tariffs from the European Union.
As reported by Arena EV on Wednesday (13/5) local time, BYD Executive Vice President Stella Li said the company is actively looking for existing production facilities that are no longer being used. Italy is said to be one of the countries that BYD is targeting.
BYD is said to have held discussions with several European automotive manufacturers, including Stellantis, to utilise factories that are currently not being used optimally.
The move is seen as a shortcut for BYD to accelerate electric vehicle production in Europe without having to build new facilities from scratch. In addition to being faster, this strategy is also considered more cost-effective.
Stellantis is considered a potential partner because the automotive group has about 20 vehicle assembly plants in Europe and is under pressure to reduce operational costs. The company had also previously been open to selling or sharing its production lines.
However, Stella stated that BYD wants to operate the facilities independently and is not interested in using a factory operational sharing scheme with other companies. The Chinese automaker wants to maintain full control over its electric vehicle production process.
This strategy marks a change in approach for Chinese automakers in the European market. Previously, vehicles were produced in China and then exported to Europe, but now manufacturers are starting to build vehicles directly in the region to avoid tariffs and increasing trade barriers.
In addition, local production is also considered to strengthen BYD’s image as a player in the European automotive industry, rather than just an import brand from outside the region. BYD is currently also building a factory in Hungary and plans to establish a second production facility in Turkey.
The demand for electric vehicles in Europe continues to increase. The latest market data shows that electric vehicle registrations in the region increased by 27 per cent in April compared to the same period last year, or about 400,000 units in one month. Chinese manufacturers are also becoming more aggressive in the European market with a market share of 22 per cent.
Globally, the BYD group recorded sales of more than 1 million vehicles in the first four months of this year. Of this amount, about 454,000 units came from markets outside of China. In April alone, BYD’s overseas sales reached a record 134,500 units.