In crash tests, cars made by China’s BYD have performed just as
well as their European rivals.
Right now there’s a growing backlog of BYD cars in the German port
of Bremerhaven, due to insufficient demand.
But having sold more EVs than anyone else in the last quarter of
2023, the carmaker is not putting the brakes on
its expansion strategy.
Across Germany, new BYD showrooms are popping up,
like this one in Berlin.
For most customers, it’s their first look at the Chinese vehicles.
They’re used to driving a VW, Mercedes or Renault – but are
curious to check out both the design and engineering of
models by the names of Tang, Han and Dolphin.
It’s a nice feel.
Very comfortable.
The workmanship is top.
It’s a great brand, and it’s a perfect fit for us as a family.
They seem very similar to the Europeans, but are
they as well-constructed?
We'll have to see.
But I’m sure they’ll have put in a lot of effort.
The showroom manager is in no doubt that the cars will find
plenty of buyers.
BYD makes its own batteries as well as crucial chip components – in
its own factories.
A lot of potential buyers are surprised by the high quality of
materials – and a by German standards, generous array of in-car
entertainment up front.
Prices for a BYD model here start at 29,000 euros.
BYD also has to look at how
comparable competitors are faring,
and not overdo things.
We see the Seal as a
direct rival to Tesla.
And its entry-level price is just below Tesla models.
BYD’s Explorer ships can transport up to 7,000 electric cars.
The company is planning to dispata further eight of them on
the route to Europe – with an eye on conquering the huge market here.
On its domestic market BYD outsells US rival Tesla.
As electric cars become the subject of a brutal price war, production
capacities are huge.
Add another night shift or continue
production all weekend, and China
could easily be turning
out 50 million cars a year.
But interestingly, domestic demand of only 23 million means
a difference of 27.
US demand is at 14 million and Europe 13.
So China has built up capacities so enormous that they could cover
the entire world.
Figures like that have prompted the EU to consider introducing
punitive tariffs due to BYD’s excessive state subsidies – one
possible way of stemming the tide of Chinese EVs.
Anticipating those tariffs, BYD is intending to build a factory in
the EU – on this patch of countryside in southern Hungary.
But the first digging will be by archaeologists.
Roman-era artefacts dating back more than 2,000 years have
been found here.
For centuries, the area was used as pastureland for grazing cows.
That discovery could mean serious delays for construction work
but BYD expects its cars to be rolling off the line here next year.
So will the project have to be halted?
It’s not in our interest, and of
course we don’t plan to do that.
We’re working closely with other
institutions that are carrying
around archaeological work – and with investors, so that we can do
our job and they can do theirs with a minimum of interruptions.
Hungary is a popular springboard for Chinese companies in Europe.
Budapest is home to one of the biggest Chinese communities
on the continent.
And soon, thousands of workers are expected to arrive from China to
build the new BYD factory.
This could also see part of China’s surveillance system coming to Hungary
which would mean China gaining access to Hungary’s own
camera surveillance network.
The two countries have now signed a security pact.
Hungarian police could soon start to be accompanied on street patrols
in Budapest by Chinese security personnel.
The leader of the opposition in the Hungarian parliament fears
that the arrival of BYD will have adverse side-effects.
I don't think they'll do the same social credit system
that works in China.
But even if they bring in
the camera and facial recognition system,
that is something tha could be very much used by
an autocratic government like Hungary.
BYD is confident of selling
EVs on the European market.
But it could also mean
the import of more than just
Chinese electric cars.