BYD Co. has been contacted by the Italian authorities as a part of the nation’s efforts to draw a second automotive producer past Fiat maker Stellantis NV.
“We have some contacts to discuss about that,” Michael Shu, managing director of BYD Europe, stated in an interview on the Geneva Worldwide Motor Present. The necessity for a second European plant “depends on our sales — now we’re making very good progress.”
Prime Minister Giorgia Meloni’s authorities has plans to draw a brand new main carmaker to Italy after Stellantis signaled it might transfer some manufacturing to lower-cost nations. Producers are below strain to turn out to be extra environment friendly within the EV transition with battery car costs nonetheless far greater than equal combustion-engine vehicles.
A authorities consultant for the business ministry declined to touch upon discussions with BYD.
Trade Minister Adolfo Urso stated this month the nation “backed the arrival” of a second producer, calling it “a project we have been working on for months with meaningful talks with foreign partners.”
BYD, which overtook Tesla Inc. because the world’s largest EV maker final yr, in December confirmed plans to construct a manufacturing unit in Hungary to assist increase gross sales within the area. It’s too quickly to say when and if a choice might be made on a second one, Shu stated. BYD needs to construct up its native provide community in Hungary as a part of that push.
“We want to go as deep as possible” with the native provide chain, Shu stated. “Everything we do is for localization.”
The transfer has raised the prospect of yet one more competitor to Europe’s home carmakers, notably for Volkswagen, Stellantis and Renault that serve the aggressive mass-market phase.
BYD’s funding in Hungary comes just a few months after the European Union introduced a probe into state subsidies to Chinese language EV makers, and will assist the corporate keep away from any further import tariffs. The producer has been cooperating within the investigation, Shu stated.
“We have strong products and technology and supply-chain management flexibility,” he stated. “Based on facts, I don’t think” the corporate’s success in Europe “is coming from subsidies.”
