BYD committed to second European factory amidst EV market slowdown

BYD Seal electric performance sedan

Despite the evolving landscape of the electric vehicle (EV) market, the Chinese EV giant BYD remains steadfast in its commitment to expanding its presence in Europe. Stella Li, the company’s vice president for Europe and the Americas, affirmed that BYD will forge ahead with plans to establish a second factory on the continent, even as the EV market experiences a slowdown.

Li expressed confidence in BYD’s competitive edge, shrugging off the European Union’s ongoing probe that could potentially lead to tariffs on Chinese EVs. “When your competition worries about you, that means that you’re super good,” Li remarked during an interview on Thursday at the prestigious Top Marques auto show in Monaco.

While BYD’s first European factory in Hungary is set to commence production by the end of next year, the company is actively exploring suitable locations for a second facility. Li assured that “when the time is ready, we’ll invest in a second facility,” underscoring BYD’s long-term vision for the European market.

In response to the declining EV sales witnessed in several EU nations, BYD is diversifying its product lineup by introducing plug-in hybrid electric vehicles (PHEVs), such as the Seal U DM-i model showcased at the Monaco event. These vehicles combine a combustion engine with a mid-size electric battery that can be plugged in for charging, offering consumers a transitional option as they embrace electric mobility.

Li highlighted the appeal of PHEVs as “the first baby step to enjoy the technology” for car buyers. She acknowledged that some consumers may have concerns about the availability of charging stations and range anxiety associated with fully electric vehicles, making PHEVs a more attractive choice.

Despite criticisms surrounding the weight and potential for harmful emissions when the batteries are not charged, BYD sold an impressive 1.5 million PHEVs last year, accounting for half of its global sales. Li defended the company’s strategy, stating that such cars can cater to consumers’ concerns while gradually introducing them to electric technology.

Addressing the European Commission’s anti-subsidy investigation into Chinese electric cars, Li expressed confidence in BYD’s competitiveness. “If I’m a smart consumer, I’ll think that it’s a good image. That means that Chinese cars have good quality and are very competitive, accessible,” she said.

While BYD disagrees with the accusations regarding subsidies, Li acknowledged that duties on Chinese cars could “hurt European consumers” by limiting their access to “affordable technology.” Nonetheless, she reaffirmed BYD’s commitment to the European market, stating, “We’ll continue to invest in Europe and build success here.”

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