Currently excluded from the future ecological bonus in France, the Chinese manufacturer BYD would have found a way to be eligible, while expanding its market. The solution ? Set up a factory in Europe.
Number 2 in the global electric car market, the Chinese car manufacturer BYD, for Build Your Dreams, has an exceptional presence in Asia. On the other hand, the situation is getting more complicated for Tesla’s most serious competitor outside the Asian continent, in particular because of export costs.
With more than 900,000 electric cars sold worldwide, the Chinese manufacturer hopes to dethrone Tesla, which peaked at more than 1.3 million units sold worldwide in 2022. But, for that, BYD will have to switch to l attack on European soil, where its presence is almost non-existent.
Soon a BYD factory in France?
According to a ministerial source mentioned in an article in Les Echos published on May 22, 2023, the Chinese automotive giant would have entered into discussions with France in order to build a factory on European soil. Several countries are also on the file, such as Germany, Poland and Hungary. But, according to information provided by Les Echos, the future factory of the Chinese group should be located, preferably, near a port. This factor places France as the big favorite for a potential arrival of a BYD factory on its territory.
Such an arrival would work in favor of the country, which wishes to reindustrialize and attract brands, as was the case during the Choose France summit. This would also work in favor of the Chinese manufacturer: by setting up in Europe, BYD could circumvent the new rules of the ecological bonus applied by the end of 2023.
Investments to obtain the ecological bonus
In a press kit dated May 2023, the government indicated that it wanted to condition the ecological bonus on the environmental footprint of electric vehicles. It is recalled that Chinese vehicles “have a manufacturing carbon footprint approximately 45% higher than that of similar models produced in Europe”. With an arrival on European soil, the Chinese giant BYD would drastically reduce its carbon footprint, both in the production of vehicles and in their export to Europe. On the French side, such an establishment would also attract many subcontractors to the region where the plant is located.
Although unofficially interested in France, the Chinese manufacturer was absent from the Choose France summit, unlike its rival Tesla and its director, Elon Musk. The latter promised “significant investments in France” following his meeting with Emmanuel Macron, but without specifying a timetable.
BYD is very active against global warming
By establishing itself on the European continent, BYD will be able to continue its fight against global warming, as stated by the CEO of the brand in the Benelux region, Aleksey Krapotkin, in an interview with Business AM: “First of all, our mission as BYD is to cool the earth by at least one degree. We are not in the market for the money. We are in the market to make our environment safer and better and to prevent global warming. »
An arrival of BYD on European soil, or even France, could reshuffle the cards for the sale of electric cars. For motorists, it would also be positive: they would be able to access these cars which are currently selling at high prices and without an ecological bonus. As for the authorities, they would find massive investments there at the local level. Only “losers”: competing manufacturers, who would see a giant strengthen.
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