China's BYD eyes Germany for potential third EV plant in Europe
Chinese electric vehicle giant BYD is considering Germany as a location for its potential third assembly plant in Europe, according to a source familiar with the matter, News.Az reports, citing Reuters.
This comes after Germany, Europe’s largest economy and car market, opposed EU tariffs on China-made EVs last year.
Chinese carmakers are looking to set up manufacturing and assembly plants in Europe as they seek to sell more lower-cost cars in the region to challenge European competitors as demand slows in China, the world's largest car market.
They also want to avoid the import tariffs the EU imposed on China-made EVs last year.
Executive vice-president Stella Li said in an interview earlier this month with Automobilwoche that BYD was considering a third facility to serve the European market in the next two years - in addition to the two it is building in Hungary and Turkey - but she did not say where.
The source said Germany is BYD's top choice, although the matter is being questioned internally because of the country's high labour and energy costs, low productivity and low flexibility. No final decision has been taken yet.
BYD's site in Hungary should launch production in October, while the factory in Türkiye should come on line in March 2026. When fully operational, they will have a total production capacity of 500,000 cars per year.
As well as EVs, BYD is also betting on hybrid technology for its European expansion.
According to estimates by S&P Global Mobility, BYD's European sales will more than double this year to 186,000 units, from 83,000 units in 2024, and are expected to further increase to just under 400,000 units by 2029.
The source declined to be named because they are not authorised to speak to the media.
BYD did not immediately respond to a request for comment.
The company is considering Western Europe for a third plant because it wants to build brand recognition and acceptance among European customers as a local manufacturer, the source said.
But the company is also adhering to a directive from Beijing not to invest in countries that supported the import tariffs, the source said. This means BYD is currently discounting some EU member countries, including Italy and France, because they backed the tariffs, the source added.
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