China's BYD to Build EV Plant in Hungary -- Update
22 December 2023 - 1:41PM
Dow Jones News
By Adria Calatayud
China's BYD plans to build an electric-vehicle plant in Hungary,
setting up its first car factory in Europe as Tesla's rival seeks
to expand beyond its home market.
The company--backed by Warren Buffett's Berkshire Hathaway--said
on a social-media post on Friday that it hopes the move will
accelerate the pace of its entry into the European EV market and
broaden its global footprint.
The company didn't detail the size of its investment in Hungary
or when production will start, but said the plant will be
constructed in phases and is expected to create thousands of local
jobs.
Hungarian Foreign Minister Peter Szijjarto said BYD's plant, to
be located in the southern city of Szeged, will be one of the
biggest investments in the country's history. The Hungarian
government plans to provide financial aid, but the size of its
support will be disclosed only after approval by European Union
authorities, he said.
BYD, China's largest EV maker, is closing in on Tesla's position
as the world's No. 1 seller of EVs and has set its sights on
expanding globally after surpassing Volkswagen as the top car brand
by sales in its home market.
The company is building an EV plant in Thailand and The Wall
Street Journal reported earlier this year that it held talks to buy
a Ford Motor manufacturing plant in Germany. In October, Ford said
an unnamed investor pulled out.
The rise of BYD and some of its Chinese peers has raised
concerns in developed countries. The Biden Administration is
discussing raising tariffs on Chinese EVs, The Wall Street Journal
reported this week. In September, the European Union launched an
antisubsidy investigation into Chinese EV makers.
BYD doesn't feature in the list of bestselling car companies in
the EU that the European Automobile Manufacturers' Association, or
ACEA, publishes every month. However, the company has been taking
market share in some countries such as Sweden, data from the
Mobility Sweden automotive association shows.
Tesla held 3.5% share of the EU car market in November,
according to ACEA.
With its plant in Szeged, BYD will become the latest Chinese
company to bet on Hungary, which has been courting Chinese
investments for years. EV battery maker Contemporary Amperex
Technology--known as CATL--last year said it would invest 7.34
billion euros ($8.08 billion) to build a plant there and the
country hosts a Huawei Technologies supply center.
Mercedes-Benz, BMW and Audi, among other carmakers, also have
factories in Hungary.
Sherry Qin contributed to this article.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
December 22, 2023 08:26 ET (13:26 GMT)
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