China’s BYD is already locked into a fast-moving plan to build cars in Europe. Now it says batteries have to follow.
On Wednesday, during an auto industry event in Milan, Alfredo, the company’s European adviser, made it clear: if BYD is serious about making EVs locally, it can’t keep flying batteries in from China.
The company’s factory in Hungary is almost ready and should start running by the end of this year. A second plant in Turkey is set for 2026. These two alone will give BYD the capacity to build about 500,000 cars a year in Europe.
That’s a huge change from where the company started, which is with selling only electric cars in Europe. Now it’s adding plug-in hybrids to the mix, because European buyers seem to like the flexibility.
BYD lays out the options for its next big move
Alfredo said the company hasn’t decided what comes next. It’s weighing two options: a third car plant or its first battery facility in the region. Either way, BYD is not slowing down. “It does not make sense to invest in car assembly but bring batteries from China,” he told the audience in Milan.
“Several factors come into play when choosing a new location,” Alfredo said, pointing to things like energy prices. “Energy cost is objectively one of the most important competitiveness factors,” he added, since both types of factories use a ton of electricity.
Right now, the focus is on getting Hungary’s plant running at full speed. But BYD is already talking to governments across Europe about where it might set up its next base. The company says it wants all the EVs it sells in Europe to be built in Europe by 2027.
That goal is meant to help the company avoid EU import tariffs. And for now, plug-in hybrids will likely dominate sales, according to Stella, the company’s EVP. Fully electric models are still part of the plan, but BYD sees hybrids as the near-term money maker.
On top of all that, Alfredo had something to say about Warren Buffett. Last month, Buffett’s company, Berkshire Hathaway, finished selling its full stake in BYD after 17 years. Some thought that move meant he was losing trust in the company.
Alfredo wasn’t having it. “Buffett made a profit of 20 times the capital he invested. He did very well to do what he did,” he said. “We’ve been extremely glad to have had Buffett, but the fact that he monetised his position is exactly what Berkshire Hathaway does for a living: buying, earning and selling.”
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Source: https://www.cryptopolitan.com/byd-says-it-needs-battery-plants-in-europe/
