AsianFin -- Chinese electric vehicle giant BYD is considering Germany as a location for its third assembly plant in Europe, Reuters reported, citing a source familiar with the matter.
The move comes after Germany, Europe’s largest economy and automotive market, opposed EU tariffs on China-made EVs last year.
Chinese automakers are increasingly establishing manufacturing and assembly plants in Europe to expand their market presence with more affordable vehicles, challenging European competitors amid slowing demand in China, the world’s largest car market. They are also looking to circumvent EU import tariffs on Chinese-made EVs.
Earlier this month, BYD Executive Vice President Stella Li told Automobilwoche that the company was planning a third European facility within the next two years, in addition to its ongoing projects in Hungary and Turkey. However, she did not specify the location.
According to the source, Germany is the leading contender, but internal discussions highlight concerns over the country’s high labor and energy costs, low productivity, and limited flexibility. A final decision has yet to be made.
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