Chinese automaker BYD plans to produce all electric vehicles for Europe domestically by 2028
BYD Shifts Gear Towards European Market, Aims for Local Production of Cars by 2028
In a significant move, Chinese electric vehicle giant BYD has announced its plans to respond to the tariffs imposed by Brussels last year on electric cars built in the People's Republic. According to reports from news agency Reuters, all cars offered in Europe by BYD will be produced in Europe by 2028.
Executive Vice President of BYD, Stella Li, made these statements at the IAA Mobility show in Munich. Li also revealed that the company is educating itself to become more European in production. BYD plans to expand its product line in Europe, focusing on plug-in hybrids.
In addition to this, BYD is building a factory in Hungary, which is set to begin production this year. The company also plans to produce electric cars in Turkey, starting next year. These strategies aim to avoid the EU tariffs on electric models from China.
One of the key products in BYD's European lineup is the mid-size SUV Seal U, available as a full electric car and a plug-in hybrid. The company has also recently introduced a partially electric station wagon, marking a new product introduction from BYD.
Li further announced that BYD will introduce three to four more plug-in hybrids in Europe in the next six months. The luxury brand Yangwang, a new addition to BYD's brand portfolio, is also targeted at European customers. The luxury brand is expected to launch in Europe approximately two years after its introduction in China, but no exact date has been given. It is unclear whether electric cars from the luxury brand Yangwang will also be produced in Europe.
The EU activated additional tariffs on electric cars from China in 2024 due to perceived unfair advantages from government subsidies. These tariffs make electric cars from China significantly more expensive. However, producing them locally can circumvent these tariffs, as seen with BYD's strategies in Hungary and Turkey.
BYD's new focus on plug-in hybrids is a strategic move to avoid EU tariffs on purely electric models from China. The company expects plug-in hybrids to surpass pure electric powertrains in sales in the next one to two years in Europe.
As BYD continues to expand its presence in Europe, it is clear that the company is committed to adapting to the European market and providing a diverse range of electric cars to meet the growing demand for sustainable transportation.
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