BYD will need to manufacture auto batteries in Europe to support its growing regional car production, the company’s special adviser for Europe said on Wednesday.
The world’s largest seller of electric and hybrid cars is building a factory in Hungary, due to start production by the end of this year, and another in Turkey scheduled for 2026. Together, the sites are expected to provide capacity for around 500,000 vehicles annually.
“It does not make sense to invest in car assembly (in Europe) but bring batteries from China,” BYD’s European adviser Alfredo Altavilla said during an automotive conference in Milan. He added the company was still weighing whether to prioritise a third assembly plant or a battery-making facility.
BYD aims to produce all of its electric vehicles for Europe locally within three years, helping the company avoid EU tariffs. Executive Vice President Stella Li said earlier this month that plug-in hybrids were expected to dominate European sales in the near term.
Altavilla said BYD was in discussions with authorities across the continent as it considers further investment. “Several factors come into play when choosing a new location … such as energy cost, which is objectively one of the most important competitiveness factors, because both assembly and battery factories are energy-intensive businesses,” he noted.
The Shenzhen-based automaker, which initially sold only battery-electric cars in Europe, has expanded its line-up to include plug-in hybrids, a move that has proven popular among consumers.
Altavilla also commented on Warren Buffett’s Berkshire Hathaway decision to fully divest from BYD earlier this year, ending a 17-year investment. “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 (as an investor), but the fact that he monetised his position is exactly what Berkshire Hathaway does for a living.”
Source: Reuters
