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BYD Considers Third European Factory Amid Rising Tariffs and Growing EV Demand

BYD is considering the construction of a third production facility in Europe as part of its strategy to strengthen its presence in the region. This move comes as the European Union’s recently imposed tariffs on Chinese-made EVs push major Chinese automakers to localise their operations in order to remain competitive.

Already a leader among Chinese brands in Europe, BYD outsold rival SAIC Motor’s MG brand by 44% in January. However, with increasing regulatory hurdles and mounting pressure from tariffs, BYD is accelerating its efforts to establish local manufacturing. The company is currently developing two plants: one in Hungary, which is scheduled to begin production later this year, and another in Turkey, which is now in the planning stages. Together, these facilities are expected to deliver a combined annual output of 500,000 vehicles, enabling BYD to significantly reduce its reliance on imports while securing a stronger position in one of the world’s most lucrative EV markets.

Speaking to reporters in Frankfurt, BYD Executive Vice President Stella Li confirmed that the company is evaluating the feasibility of a third European factory. A decision is expected within the next 18 to 24 months. BYD is also exploring the possibility of launching local EV battery production in Europe, though no specifics on location or timeline have been disclosed. (more…)

Polestar to begin work on state-of-the-art factory

Polestar has started construction work on its new state-of-the-art production centre in Chengdu, China. The facility, once completed, will be the most environmentally-responsible car factory in China. It will also be one of the most efficient in the world, with a target to attain the Gold status in the LEED ratings (Leadership in Energy and Environmental Design).

The automaker hopes to complete the work by mid-2018 to begin tooling installation and pre-production testing. Its a pretty tall order considering the amount of effort that is required to complete such a facility within the next 9 months.

Thomas Ingenlath, Chief Executive Officer of Polestar, said, “Following the successful launch of the new Polestar brand in October, construction of the new Polestar Production Centre is the next step in turning our plans into reality.”

“We are building a Production Centre that is a reflection of our brand. A facility that is modern, progressive, technically advanced and environmentally responsible. T he Polestar Production Centre will be an embodiment of the Polestar brand, ” he later added.

Once complete, the centre, which has been designed by Norwegian international award-winning architects, will be the birth place of the automaker’s first non-volvo production car, called the Polestar 1. Unveiled last month, the car is essentially a Grand Touring Coupe with a 600-bhp hybrid powertrain.

Polestar says that this car will be capable of covering 150km on pure electric power, which is impressive for a typical hybrid. This would effectively, allow the Polestar 1 to be driven on pure electric power for prolonged periods of time, and negating the need for petrol power.

But it won’t be the only car that will be made at the new facility, because Polestar has plans of producing several others that include a pure EV. Besides building cars, the facility will also house a customer experience centre and a test track that will enable potential customers to experience all that Polestar has to offer.