BYD Lyrics Germany As The Third Production Base In Europe

BYD Atto 3. (Doc. BYD Auto)

JAKARTA - Electric vehicle giant from China, BYD plans to expand its market in Europe by considering setting up a factory located in Germany. The facility is projected to be the third factory located on the blue continent.

Reported by Reuters on Tuesday, March 18, the automaker plans to set up manufacturing and assembly factories in Europe with the aim of increasing sales volume of more vehicles at lower prices.

Not only that, but the company also intends to avoid import rates that apply in the European Union (EU) against Chinese electric vehicles.

The report also mentions that Germany is BYD's top choice, although this decision is questionable given the great labor and energy costs in the country with low productivity and flexibility.

The company is considering Western Europe for a third plant because it wants to build brand recognition and acceptance among European customers as a local producer, the unnamed source said.

However, the company also complied with directives from headquarters in Beijing, China not to invest in some countries that support import rates.

Thus, BYD currently has no plans to disburse funds in several EU member countries such as Italy and France. It is stated that the two countries support the import rate policy.

Earlier in January, several officials and automakers from China were examining a number of factories in Germany that are expected to be closed, particularly the Volkswagen production line.

Currently, BYD has confirmed it will have two European factories, namely in Hungary, which will start production in October and Turkey will be operational by March 2026. When operations begin, these two factories will have a production capacity of up to 500,000 cars per year.