According to media reports, an "anonymous source" has indicated that Chinese electric car manufacturer BYD is planning to establish its first factory in Europe in Hungary. The decision has apparently been made, and specific details may be announced to the public by the end of the year. If the European factory is successfully established, BYD will take a crucial step in its expansion into overseas markets.
As early as February this year, BYD Executive Vice President Li Ke revealed the company's intention to build a factory in Europe and mentioned ongoing feasibility studies. Despite negotiations with Ford about acquiring one of its German factories, the discussions did not reach a successful conclusion. BYD seems to prefer constructing its own factory rather than taking over assets from other car manufacturers.
For BYD, building a factory in Europe comes with several advantages, such as avoiding tariffs, logistics costs, and better adapting to and meeting the demands of the European market. This move allows BYD to explore a business model of directly producing and selling cars in overseas markets.
In October of this year, Hungarian Prime Minister Viktor Orbán visited Shenzhen after attending the third Belt and Road International Cooperation Summit Forum. During his visit to BYD and other companies, Orbán had an in-depth tour and experience, gaining insights into BYD's technological developments in areas such as new energy vehicles and batteries. This visit suggests potential further collaboration between the Hungarian government and BYD.
