BYD's European leap: French courtship amid expansion plans
4:51 PM EDT, May 8, 2024
BYD, the largest car manufacturer in China and one of the most popular brands globally in unit sales is establishing its first European factory in Hungary. However, the French government has extended a warm invitation to the company, signaling potential expansion opportunities within Europe.
During a visit on May 6-7, Chinese leader Xi Jinping was hosted by Emmanuel Macron in France. Discussions primarily focused on the Ukraine conflict, Chinese investments, and Franco-Chinese trade relations.
Chinese car manufacturers are avidly seeking to establish European production bases sooner rather than later. This urgency is partly due to an ongoing European Union investigation into the subsidies provided by the Chinese government for electric vehicle production. These subsidies are believed to skew the competition landscape, potentially leading to significantly higher tariffs on vehicles produced in China.