The Chinese car manufacturer BYD apparently thinks about a third work in Europe – and Germany in particular could be an option as a location.
• BYD apparently thinks about third work in Europe
• Germany according to insider as a favorite in choosing the location
• BYD sales figures in Germany recently disappointing
The electric car maker Tesla showed it and built a production facility in the German town of Grünheide near Berlin a few years ago. Now the rival BYD could soon add.
BYD is considering third work in Europe – possibly in Germany
As the news agency “Reuters” reports, the Chinese car manufacturer BYD plans to further expand its European production network. In addition to the two works in Hungary and Turkey, there is now a third location in Western Europe – and Germany is a promising candidate, as an insider told the news agency.
As the insider continued, the Chinese car manufacturer wants to continue to establish the BYD brand in Europe with another European plant and, as a local manufacturer, gain brand awareness and customer acceptance. Germany is the preferred choice, among other things, because the country – albeit in vain – had spoken out against EU tariffs on Chinese electric cars. Because the company had been encouraged from Beijing not to invest in countries that have supported import duties and also want to stick to it.
However, a final decision for a location has not yet been made and there are still internal discussions because some factors would also speak against Germany. For example, the high energy and labor costs, as well as low productivity and flexibility, would be viewed critically.
German car factories already inspected
BYD is already building two production facilities in Europe: The plant in Hungary is scheduled to start production in October 2025, while cars are to be offset in Turkey from March 2026. With full capacity, these locations can produce up to 500,000 vehicles a year, according to “Reuters”. A third work would further increase the production capacity and BYD would enable BYD to better use European customers.
Another work in Germany could also offer strategic advantages. According to the news agency, several Chinese carmakers would currently plan to build their own production facilities in Europe in order to challenge established manufacturers and bypass imports. According to “Reuters”, some Chinese officials and carmakers even visited some factories from German car manufacturers in January. These could possibly be adopted and adapted to your own needs in car production.
Challenges for BYD in Germany
Stella Li, the BYD European chief and supposedly second most important person in the company according to founder Wang Chuanfu, confirmed to the “automotive week” that another work in Europe is planned within the next two years. However, according to the “Reuters” source, a final decision also depends on sales development in Europe and the capacity utilization of the works in Hungary and Turkey.
According to S&P Global Mobility estimates, BYDS European paragraph 2025 could more than double to 186,000 vehicles and rose to almost 400,000 units by 2029. In Germany, however, the Chinese Tesla rival fights with problems, the sales figures have recently decreased: According to “Vision Mobility”, BYD sold only 2,891 electric cars in Germany-after 4,139 units in 2023. Nevertheless, BYD strives for 50,000 new registrations per year in this country.
Maria Grazia Davino, Regional European Managing Director of BYD, told “Vision Mobility”: “This year we are lending important foundations for the strategic growth and success of our brand in Germany: We strengthen our dealer network by significantly expanding sales and service centers, bringing interesting new models onto the market that expand our wide model portfolio through marketing in qualified promises of our brand “. A work in Germany could also help.
It remains to be seen whether BYD will ultimately opt for Germany as the next production location. An official announcement has finally been pending. However, such an investment could be an important turning point for the European – and above all the German – car market.
Editor finance.net
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