BYD, a Chinese automaker, is constructing a plant in Hungary while its rivals expand through joint ventures in Europe. The company is raising its profile in Europe by teaming up with distributors in 19 countries and offering popular electric and hybrid models. Melissa Eddy traveled to Szeged, Hungary, to see where BYD will build its first European plant and to meet with local officials.
The leafy city, boasting wide avenues, a respected university, and ornate, pale yellow villas near the country’s border with Serbia, looks more like a relic of the Hapsburg empire than the location of Europe’s automotive future. At a 740-acre construction site there, excavators have already begun preparing for what will be the first European assembly plant of China’s leading automaker, BYD. Large concrete pipes and stacks of metal sheets stand ready, with the cornerstone to be set this fall.
Timing is crucial. The European Union is poised to decide by Oct. 30 whether to increase duties on vehicles entering the bloc from China.
The duties, which come on top of an existing 10 percent tariff, would range from 9 to 35.3 percent and remain in effect for five years. Although significantly lower than the 100 percent tariffs imposed by the United States and Canada, these duties challenge Chinese automakers eager to break into the European market. BYD has already been seeking to raise its profile in Europe, working with distributors across 19 countries to offer electric and hybrid models and sponsoring the European Championship soccer tournament this summer.
Bidding BYD in Hungary
Sandor Nagy, a deputy mayor responsible for urban development in Szeged, said of BYD’s plant, which the company plans to bring online next year, “They have very ambitious plans. And they obviously have a very strong incentive with the tariffs.”
Other Chinese automakers, eager to convince Europeans that their cars are fun to drive and more affordable than models made by European companies, are also looking for ways to avoid the tariffs.
Ge Hongde, the Chinese auto manufacturer’s UK and Ireland country manager, said at the Cambridge China Business Forum yesterday that BYD is trying to expand and give people the latest technologies and better value for money, despite the challenges Chinese EVs are facing in Europe. BYD believes the UK is a promising market, and the company is also bringing products to other European countries. The firm already has regional offices in most major European nations, including the UK, France, Spain, Germany, and Italy.
BYD is utilizing the dealer model to penetrate the European market, forming tie-ups with dealers and distributors. BYD has established a presence in most Western European countries with 41 outlets in the UK, six in Ireland, and six or seven in the Netherlands. Ge highlighted that building brand awareness is crucial, and BYD is achieving this by setting up stores in the heart of several European cities.
The company has three shops in central London, one near the Avenue de Champs-Elysees in Paris, and one in downtown Milan. BYD’s global expansion kicked off in 1998, and the company launched its passenger vehicle business in Europe in 2022. Currently, it has seven passenger car models available in Europe, from sedans to sport utility vehicles.
As of 2024, BYD has received over 6,000 electric bus orders across 26 European countries, covering more than 160 major cities. The company accounts for 80 percent of the electric bus market in London.
