Chinese electric vehicle giant BYD is seriously considering Germany as a possible location for its third plant in Europe. This is reported by Reuters, citing its own sources. However, the final decision has not yet been made.
At the end of February, BYD Executive Vice President Stella Li announced the construction of the Chinese company's third plant in Europe, in addition to facilities in Hungary and Turkey, but even then she did not say where it would be.
However, Germany is one of the most likely candidates for the construction of a BYD plant, given the high level of technological development. But other options are also being discussed within the Chinese company.
Among the factors that may influence the final decision are high labor costs, energy resources and limited production flexibility. BYD's main competitor, the American brand Tesla, saw sales in Germany fall by 76% in February after the company's CEO Elon Musk angered voters with his support for the far right.
94% of Germans surveyed said they would not buy Tesla again. Only 3% would consider buying electric vehicles from the company. In this vein, building a plant in Germany is even more likely, with the Chinese already eyeing ready-made German factories that are scheduled to close and are particularly interested in Volkswagen's capacity.
The decisive factor will be how "pro-Chinese" the positions of individual countries will be in the coming years. The final decision on the third plant will also depend on BYD's sales results in Europe and the capacity utilization at the plants in Hungary and Turkey.
BYD's first European plant in Hungary is scheduled to start operations in October 2025, and the plant in Turkey will begin operations in March 2026. The total capacity of these plants will be 500,000 vehicles per year, including electric vehicles and hybrid models, which are a priority for BYD in the European market.