A second factory, maybe a third, an R&D center and several new brands. This week, BYD lifts the veil on its strategy to strengthen its presence in Europe.
While BYD’s first passenger car production plant located in Hungary should produce its first models by the end of 2025, the manufacturer is already considering a second factory to meet production needs that it expects to grow.
“We will open a second factory, we are preparing to open a second, or even a third,” Stella Li, general director of BYD Europe, confesses to BFM Business, during an event at its headquarters in Shenzhen (China).
The group’s number 2 has not designated any country to host these new sites, citing Germany, Italy, France and other countries as possible locations. “We are going to meet with different governments, but for the moment we are making sure that our first factory works and that each market launches the vehicles, with the right marketing,” explains Stella Li.
BYD’s Hungarian factory is expected to produce 150,000 cars per year in the first phase, with production starting at the end of next year. Ultimately, it will produce 300,000 vehicles.
A design and R&D center in Eastern Europe
Of course, the brand will be able to count on its internal equipment suppliers in this growth strategy. In this way, the group can produce 70% of a vehicle internally.
Another new piece of this European puzzle: the group will establish its first R&D and design center there, probably in Eastern Europe. “We are working to open a design center and then we will build the equivalent of satellite equipment in key markets to ensure our teams understand the needs of the local market,” explains Stella Li.
No date has yet been given for the opening of this design center. But the objective is clearly to give “a European flavor” to the group’s cars sold in Europe, while the EU investigates the subsidies granted by the Chinese Government to local manufacturers, with BYD at the head of the aisle.
Beyond the industrial network, BYD intends to expand its commercial portfolio. The group will launch its high-end Denza brand in Europe this year, which includes a passenger transport van. Its luxury brand Yangwang will follow.
“BYD wants to build a long-term strategy in Europe, we are looking for long-term results,” summarizes Stella Li, for whom BYD aspires to become a “global manufacturer.”
BYD will launch a small electric car in Europe in 2025
It is the small electric car that worries Western brands. Launched in Mexico at the beginning of the year, the Seagull will thus arrive in Europe, in a segment of small cars like the Peugeot 208 that is among the most dynamic on the market. “It will be a new Seagull, a different Seagull, specially designed for Europe,” explains Stella Li. The price has not been communicated, but the manufacturer has insisted at length on the “affordable” aspect of a vehicle of this type.
Source: BFM TV
