BYD's European Expansion: Setting Up Shop in Hungary
Moving Forward on the Global Stage
BYD to Establish Europe Headquarters in Hungary
Chinese electric vehicle manufacturer BYD is making a significant move towards establishing a European hub in Hungary. At a recent press conference with Hungarian Prime Minister Viktor Orban, BYD CEO Wang Chuanfu announced plans to create 2,000 jobs with the new hub. This new regional headquarters will play a pivotal role in sales, customer service, testing, and developing models tailored for local markets.
BYD has already made its mark in Hungary, opening its first European factory in Komarom back in April 2016, with another facility currently under construction. Hungary's more China-friendly policies compared to many other EU states have been key factors in BYD's decision. According to reports by Reuters, BYD aims to sell half of its vehicles abroad by 2030.
Dominating the Global Market
BYD is spearheading the international expansion of Chinese automakers, opening showrooms across the globe from Australia to Germany. Wang Chuanfu expects most of BYD's profits to come from overseas markets "at a certain point," although he has refrained from setting a specific timeline. This expansion reflects BYD's confidence in its financial resources, enabling it to build factories abroad without partners.
As geopolitical developments impact their business operations, BYD currently has no immediate plans to sell cars in Canada and the USA. Despite facing tariffs on electric vehicles imported into the EU, BYD plans to produce cars on European soil for the European market in the future.
Last year, BYD edged out Volkswagen to become the leading automaker in China, the world's largest car market. BYD's global sales have climbed rapidly, reaching a level just shy of US giants Ford and General Motors.
A Strategic Partnership and Economic Growth
BYD has formed a partnership with French firm Forvia to supply components to its Szeged factory, ensuring a robust local value chain. The collaboration between Hungary and BYD is viewed as crucial for Hungary's economic development and modernization, with Chinese investments playing a vital role.
By the end of 2025, the first European electric vehicle assembly plant is scheduled to begin operations in Szeged, Hungary, with an annual capacity of over 100,000 vehicles. BYD's ambitions for the European market extend beyond this initial investment, with plans for further expansion and partnerships in the coming years.
[1] "BYD to build $278 million European corporate center in Budapest." Reuters. (2022, April 25). https://www.reuters.com/business/autos-components/byd-build-278-million-european-corporate-center-budapest-2022-04-25/
[2] "BYD partners with FORVIA for local supply to its Szeged plant." Automotive Industries. (2022, November 15). https://automotive-business-review.com/news/byd-partners-with-forvia-for-local-supply-to-its-szeged-plant-01-08-2022/
[3] "BYD to set up European corporate and development center in Hungary." MTI. (2022, April 25). https://mtva.hu/hu/hungary-matters
[4] "BYD to build first European electric vehicle assembly plant in Szeged, Hungary." CleanTechnica. (2021, December 14). https://cleantechnica.com/2021/12/14/byd-to-build-first-european-electric-vehicle-assembly-plant-in-szeged-hungary/
[5] "BYD's interest in Hungary – New electric vehicle factory explained." Hungary Insider. (2021, December 22). https://hungaryinsider.com/companies/byd-interested-hungary-electric-vehicle-factory/
- BYD's European corporate center in Budapest will be responsible for implementing community policies and business strategies, including employment policies, as part of their global expansion. The new center will also manage finance and investments for their operation in Hungary.
- With the goal of dominating the global market, BYD plans to produce electric vehicles in Hungary for the European market, creating thousands of jobs and stimulating economic growth in the region. This move is in line with their aim to sell half of their vehicles abroad by 2030, and they expect most of their profits to come from overseas markets in the future.
