More and more Chinese manufacturers are attacking the European market, with electric cars at very attractive prices. The EU, which takes a dim view of this new competition, could in response increase its customs duties.
European production to overcome protectionist measures
In France, the ecological bonus is now conditional on an environmental score, which currently excludes all electric cars produced in China. However, these measures may not stop the Chinese groups. Some even plan to produce their cars directly on European soil.
BYD, the second largest electric car manufacturer behind Tesla globally, will build its first European factory in Hungary, in Szeged. Other European countries, including Germany and France, were also considered.
The brand is already present in certain European markets, including France. BYD is nevertheless remaining quite discreet for the moment, despite ambitions which are much less discreet. The manufacturer thus hopes to achieve 10% market share in the electric car segment in Germany in the medium term and an overall market share of 5% at European level.
BYD’s most popular model in Europe so far is the Atto 3 SUV, which we had the opportunity to test, but many other new products are expected.
This new factory should allow BYD to play on equal terms with European manufacturers in the face of possible protectionist measures. The manufacturer will not only produce electric cars in its new Hungarian factory, but also plug-in hybrid models. It is not yet known when production will begin, nor which models will be assembled there.