BYD signed a supply agreement on Tuesday with Vienna-based Voestalpine, which will become the first supplier integrated into production at its passenger vehicle plant in Szeged, Hungary.
According to the Austrian company, it is the first partner confirmed for the factory’s supply chain.
The plant is expected to begin operations in late 2025, with an annual production capacity of around 200,000 vehicles.
Voestalpine will supply “flat steel for car bodies and outer skin components” starting in the “autumn.”
BYD Executive VP Stella Li, who attended the signing ceremony, hopes that “within five years, local consumers will regard BYD as a European manufacturer.”
Last month, BYD established its European headquarters in Hungary ahead of the beginning of local production. Located in Budapest’s 11th District, the office is expected to create around 2,000 jobs.
The Budapest hub also includes a research and development (R&D) center focused on intelligent driving technologies and next-generation EV systems.
The company’s presence in Hungary goes back to 2016, when it opened an electric bus factory in the city of Komárom.
BYD currently offers ten models in Europe, the latest being the Dolphin Surf, which launched last month. It became the cheapest model in the lineup of several European markets.
Earlier this month, Stella Li told Bloomberg that the company does not expect a price war to break out in Europe, as it did in its domestic market.
“I would say auto industry in China is growing, even with the largest auto industry now, but still compared with Europe, it’s not mature enough,” she stated.
According to its website, the company is currently present in over 20 European markets. BYD expanded to Romania, the Czech Republic, Slovakia, Croatia, Serbia and Estonia in the past few months.
By year end, the Chinese automaker expects to have more than 1,000 retail outlets across Europe.
In May, BYD sold nearly 9,400 vehicles in its major 12 European markets, quadrupling from the 2,100 units sold in the same period a year ago.
Aiming to mitigate the impact of European Commission tariffs on China-made electric vehicles, Chinese automakers are expanding their presence in Europe not just through sales, but by setting up local production.
According to Victor Zhang, Chery Auto‘s UK Director, the company is “actively considering” building its second plant in the country.
Chery-backed Omoda has sealed a joint venture plant with Spanish carmaker Ebro, in the south of Barcelona.
