New mammoth investment in Europe – Which Chinese manufacturer will build its first factory

The Chinese push into Europe is intensifying with the world’s largest electric car maker choosing the country for its new EVs factory.

After establishing themselves in the vast market of China, the large domestic manufacturers are also turning their eyes to the European markets, not only in sales but also in the manufacture of their models on the territory of the Old Continent.

Let alone BYD Auto, the world’s second-largest all-electric car maker behind Tesla and one of China’s largest vehicle manufacturers.

According to international and European media reports, BYD eventually chose Hungary to build its first ever car manufacturing plant in Europewith the decision having received the green light from the Chinese administration, although it has not yet been officially announced.

BYD’s decision shows the Chinese company’s plan to significantly increase its sales in Europe but also a planned “maneuver” to avoid any tariffs the EU is considering imposing on Chinese cars imported into its territory.

Management’s decision of BYD seems to have been taken after the country’s Prime Minister Viktor Orban’s visit to China about a month ago and his meeting with BYD founder, chairman and CEO Wang Chuanfu.

The choice of Hungary is not just by chance since the BYD already operates an assembly plant for its electric buses in the countrywhile it is expected to proceed with investments for the construction of a new battery assembly factory.

According to the official position of the Chinese company in a related question, the announcement of exactly where its new factory will be built will take place towards the end of the year, while the Hungarian government has not yet announced anything officially.

BYD’s intention to build its first factory in Europe was confirmed at the beginning of the year by the company’s executive vice-president Stella Li, who added at the time that the company was carrying out relevant sustainability studies for its project.

However, this is not the first time that BYD wants to build a factory in Europe for its cars. The same was attempted a decade ago in Bulgaria with the Chinese preparing the factory in collaboration with Bulmineral for the start of production in 2013. However, production never started, for reasons still unknown, while the Bulgarian Bulmineral was liquidated in 2014, a year later.

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