BYD Ignites European Auto Market: Pioneering Hungary Factory Sets Stage for Global EV Revolution

Published: Feb 1, 2024 16:56

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BYD, a global leader in new energy vehicles, has marked a significant milestone in its international expansion by signing a land pre-purchase agreement with Szeged, Hungary, to establish its first European passenger car factory. This landmark move, attended by high-profile figures from Hungary and China, signifies one of Hungary's most substantial and crucial investment projects to date, promising to bolster Hungary's economy and reinforce its role in the global shift towards electric vehicles. BYD's strategic venture into European manufacturing not only showcases its commitment to globalizing its operations but also positions it as the first Chinese automotive company to build a passenger car facility within the European Union. This development is set to enhance BYD's competitiveness in Europe through localized production, which will improve cost control, production efficiency, and brand presence. Amidst the surging global new energy vehicle market, BYD's expansion is a clear indication of Chinese automotive enterprises' growing influence and innovation on the international stage, signaling a new era for the global automotive industry's green and low-carbon transition.

According to an official announcement from BYD Auto on January 31, 2024, BYD and the city government of Szeged, Hungary, formally signed a land pre-purchase agreement for BYD's passenger car factory in Hungary on January 30, 2024. The signing ceremony was attended by Péter Szijjártó, Minister of Foreign Affairs and Trade of Hungary; László Botka, Mayor of Szeged; Gong Tao, Chinese Ambassador to Hungary; and Wang Chuanfu, Chairman and President of BYD. This marks a significant new breakthrough in BYD's localization process in the European region.

During the signing ceremony, Hungarian Foreign Minister Péter Szijjártó stated, "BYD's decision to establish its first European new energy passenger vehicle factory in Hungary represents one of the largest and most important investment projects in Hungarian history. The construction of the project will further strengthen Hungary's economic position, consolidate the foundation for long-term economic growth, and enhance Hungary's role in the global electric vehicle transition. Both central and local governments in Hungary will provide comprehensive support for the BYD vehicle factory project to expedite its production and operation."

Wang Chuanfu, Chairman and President of BYD, expressed, "As the world's largest new energy vehicle company, BYD is pleased to bring our highly advanced technology and highly automated production lines to Hungary, supporting the local automotive electrification transformation. In the future, through localized production and manufacturing, BYD will accelerate the creation of products with European localized brand attributes, forming closer commercial exchanges and complementary cooperation with Europe, jointly promoting the industry's green and low-carbon transformation and global sustainable development."

Localized production will further enhance BYD's competitiveness in the European market. Establishing a production base in Europe allows BYD to control costs more effectively and improve production efficiency, thereby gaining a greater competitive edge in the European market. Additionally, localized production helps to establish a positive brand image for BYD in Europe, increasing its brand awareness and reputation.

The successful signing of this agreement marks BYD as the first Chinese automotive company to build a passenger car factory in the European Union. This milestone event not only demonstrates BYD's firm determination and strong capability in its global strategy but also sets a new benchmark for Chinese automotive companies in their global expansion.

SMM believes that with the continuous heating of the global new energy vehicle market, major automakers are actively exploring and seeking greater development space, establishing factories overseas to build brand influence. Chinese automotive companies have made significant achievements in technological innovation, quality improvement, and international development. Facing greater challenges and opportunities, what is needed is continuous innovation, improvement of product quality, and differentiated adjustments according to the demands of various countries overseas. With the rise of new energy, the Chinese automotive industry is poised to achieve new successes in the global automotive arena.

If you have any questions regarding the industry data, or the news (e.g. how this can affect your business). Please feel free to reach out to me:

Robin He

SMM Li-ion Battery Materials Department

E: robinhe@smm.cn | T: +86-21-51595884

Market forecast Market review EV

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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