Chinese company BYD is close to acquiring an automobile plant in Europe
Kyiv • UNN
Chinese electric vehicle manufacturer BYD plans to acquire an existing plant in Europe, considering Spain and France. The company's sales in the region grew by 270% last year.
Chinese company BYD, the world's largest manufacturer of electric vehicles, is close to making a decision to acquire an existing automobile plant in Europe to accelerate its expansion in the region. This was stated on Wednesday by a senior advisor to the company. Reuters reports, writes UNN.
Details
"A decision needs to be made very soon," said BYD's special advisor for Europe, Alfredo Altavilla, at the Reuters Automotive Europe conference in Frankfurt, referring to the proposed EU "Made in Europe" rules aimed at stimulating local production.
According to Altavilla, Spain and France are the main candidates for so-called brownfield investments, which involve the acquisition of an existing plant from a traditional automaker. A decision is expected to be made soon.
"This week, two of our teams are studying opportunities in different jurisdictions, so we are already close to a decision," he noted, questioning the competitiveness of German production sites, which also face the problem of underutilized capacity.
His comments come as traditional automakers seek ways to overcome the problem of excess production capacity, while investing heavily in the development of new models and technologies such as batteries and software.
Mazda CX-50 outsells CX-5 driven by surging demand for hybrids05.06.26, 09:56 • 20457 views
Stellantis holds controlling stakes in joint ventures with Chinese companies Dongfeng and Leapmotor, which is part of a strategy to increase production at plants in Spain and France.
Addendum
Last year, BYD's sales in Europe grew by 270% — to nearly 188,000 vehicles. In the first five months of this year, they more than doubled and exceeded 100,000 cars.
Acquiring an existing enterprise will allow BYD to open a second assembly site in Europe after Hungary, where production is set to begin in the fourth quarter. This underscores the desire of Chinese automakers to strengthen their positions in the European market.
"Fighting this onslaught is a completely futile endeavor," Altavilla stated, adding that Volkswagen's plans for further cost cuts have become "the first real wake-up call" for the European auto industry.
According to Reuters, due to tariffs, rising costs, and increasingly fierce competition from Chinese manufacturers, Volkswagen is considering the largest restructuring in its history, which could involve cutting 100,000 jobs and closing four plants in Germany.
Altavilla also criticized the assumption that Chinese manufacturers, when entering the European market, would agree to the role of minority partners in joint ventures while simultaneously transferring their most advanced technologies.
"This is not coexistence. This is brutal violence," he said.