(2-3min reading time, own opinion)
In recent years, BYD ($1211 (+2.45%) ) China's leading manufacturer of electric vehicles, has significantly expanded its presence on the European market. With strategic investments and a clear market strategy, BYD is positioning itself as a rising star in the European automotive sky.
BYD's expansion in Europe
In December 2023, BYD announced the construction of its first European plant in Szeged, Hungary, with a planned annual capacity of over 100,000 vehicles. This plant is scheduled to start production in the second half of 2025 and is seen as an important step in strengthening BYD's European presence.
In addition, BYD plans to invest USD 1 billion in Turkey to build a plant with a capacity of 150,000 vehicles per year. This strategic decision will allow BYD to benefit from the customs union between Turkey and the EU and avoid potential trade barriers.
BYD aims to achieve a 5% market share in the European electric vehicle market by the end of 2025, even before production starts in Hungary. This ambitious target underlines the company's commitment to establishing itself as a leading player in Europe.
BYD in Switzerland
BYD has also gained a foothold in Switzerland. The company offers a range of models, including the BYD TANG, BYD HAN and BYD ATTO 3, which are available from local dealers. Emil Frey AG, one of the largest car dealers in Switzerland, has added BYD to its portfolio and offers the vehicles in its numerous branches.
BYD has also entered into partnerships with local companies in Switzerland to ensure the distribution and servicing of its vehicles. This collaboration enables Swiss customers to benefit from a comprehensive network for sales and maintenance.
Market penetration and competitive advantages
One of BYD's key competitive advantages lies in its vertical integration. The company not only produces vehicles, but also the batteries required for them itself. This control over the supply chain enables BYD to reduce costs and ensure the quality of its products.
BYD also offers a wide range of models that cover different segments of the market. From compact city cars to large SUVs, the company offers the right vehicle for every need.
Challenges and future prospects
Despite the positive developments, BYD faces challenges. In September 2023, the European Commission launched an anti-subsidy investigation against Chinese electric vehicle manufacturers, including BYD. This could lead to additional tariffs and affect competitiveness.
Nevertheless, BYD remains optimistic and is relying on its innovative strength and market strategy to establish itself in Europe in the long term. With continuous investment and adaptation to local market needs, BYD has the potential to make a lasting impact on the European electric vehicle market.
BYD's determined push into Europe demonstrates the company's confidence in the growth potential of the market. Through strategic investments and a clear vision, BYD is positioning itself as a major player in the European automotive sector. It remains exciting to see how this commitment will develop in the coming years. As a Swiss citizen, I am delighted to see BYD increasingly on our roads.
I am currently in $TSLA (-4.32%) and $1211 (+2.45%) invested. However, I believe that I will get rid of Tesla sooner rather than later, increase BYD further and, in due course, invest these same shares (profits) in a BYD vehicle. I'm still without a car so far. đ
Happy investing
GG
Sources:
https://www.swp-berlin.org/publikation/chinas-push-towards-europe-byds-investment-in-turkey
https://www.autonews.com/china/how-byd-aims-become-top-ev-player-europe/
https://www.autonews.com/byd/ane-byd-small-suv-atto-2-europe/
