WEBVTT 1 00:00:03.670 --> 00:00:08.350 In crash tests, cars made by China’s BYD have performed just as well as 2 00:00:08.350 --> 00:00:10.369 their European rivals. 3 00:00:13.310 --> 00:00:17.470 Right now there’s a growing backlog of BYD cars in the German port 4 00:00:17.470 --> 00:00:20.510 of Bremerhaven, due to insufficient demand. 5 00:00:20.750 --> 00:00:25.630 But having sold more EVs than anyone else in the last quarter of 2023, the 6 00:00:25.630 --> 00:00:29.470 automaker isn’t putting the brakes on its expansion strategy. 7 00:00:31.240 --> 00:00:35.600 Across Germany, new BYD showrooms are popping up, like this one in Berlin. 8 00:00:35.850 --> 00:00:39.600 For most customers, it’s their first look at the Chinese vehicles. 9 00:00:40.280 --> 00:00:44.560 They’re used to driving a VW, Mercedes or BMW – but are curious to 10 00:00:44.560 --> 00:00:48.800 check out both the design and engineering of models named Tang, 11 00:00:48.800 --> 00:00:50.500 Han or Dolphin. 12 00:00:51.870 --> 00:00:56.190 They seem quite similar to European cars, but are they as well-made? 13 00:00:56.190 --> 00:00:57.340 We'll have to see. 14 00:00:57.350 --> 00:00:59.010 Though I’m sure they’ll have tried hard. 15 00:01:00.640 --> 00:01:03.550 The showroom manager is in no doubt that the cars will find 16 00:01:03.560 --> 00:01:05.060 plenty of buyers. 17 00:01:05.080 --> 00:01:10.160 BYD makes its own batteries as well as crucial chip components – in 18 00:01:10.160 --> 00:01:11.390 its own factories. 19 00:01:11.410 --> 00:01:17.000 BYD must also keep an eye on the competition and react accordingly. 20 00:01:17.690 --> 00:01:22.520 For instance, we view the Seal as a direct rival to Tesla, so its base 21 00:01:22.520 --> 00:01:24.940 price is just below that of Tesla models. 22 00:01:24.959 --> 00:01:30.220 BYD’s ship Explorer No. 23 00:01:30.220 --> 00:01:33.470 1 can carry up to 7,000 EVs. 24 00:01:34.190 --> 00:01:38.390 The company plans to eventually deploy eight such car carriers – with 25 00:01:38.390 --> 00:01:41.950 the aim of conquering the European market, among others. 26 00:01:44.480 --> 00:01:49.040 In its domestic market BYD outsells US rival Tesla. 27 00:01:49.920 --> 00:01:54.360 As e-cars become the subject of a brutal price war, Chinese production 28 00:01:54.360 --> 00:01:55.940 capacities are huge. 29 00:01:55.960 --> 00:02:01.800 Add another night shift or continue production all weekend, and China 30 00:02:01.800 --> 00:02:04.980 could easily be turning out 50 million cars a year. 31 00:02:05.160 --> 00:02:08.630 But interestingly: domestic demand of only 23 million means a 32 00:02:08.639 --> 00:02:10.980 difference of 27. 33 00:02:10.990 --> 00:02:14.070 US demand is at 14 million and Europe 13. 34 00:02:14.070 --> 00:02:18.220 So: China has built up capacities so enormous they could supply 35 00:02:18.230 --> 00:02:19.680 the entire world. 36 00:02:22.120 --> 00:02:26.000 Figures like those have prompted the EU to consider introducing punitive 37 00:02:26.000 --> 00:02:30.680 tariffs to offset BYD’s extensive state subsidies – and potentially 38 00:02:30.680 --> 00:02:32.860 stem the tide of Chinese EVs. 39 00:02:36.919 --> 00:02:42.040 In anticipation of these tariffs, BYD plans to build factories in the EU – 40 00:02:42.040 --> 00:02:46.080 one on this piece of land in Szeged, in southern Hungary. 41 00:02:48.680 --> 00:02:51.800 But the first digging will be by archaeologists. 42 00:02:51.800 --> 00:02:55.960 Roman-era artefacts dating back more than 2,000 years have 43 00:02:55.960 --> 00:02:57.380 been found here. 44 00:02:57.520 --> 00:03:00.340 That discovery could hold up construction work. 45 00:03:00.440 --> 00:03:04.160 BYD aims to have its cars rolling off the assembly line here within the 46 00:03:04.160 --> 00:03:05.669 next three years. 47 00:03:05.680 --> 00:03:07.820 But will the project have to be halted? 48 00:03:09.520 --> 00:03:12.389 It’s not in our interest, and of course we don’t plan to do that. 49 00:03:12.400 --> 00:03:15.400 We’re working closely with other institutions that are carrying out 50 00:03:15.400 --> 00:03:19.680 archaeological work – and with the investors, so we can do our job and 51 00:03:19.680 --> 00:03:22.620 they can do theirs with a minimum of interruptions. 52 00:03:25.389 --> 00:03:29.590 Hungary is a popular springboard for Chinese companies in the EU. 53 00:03:29.669 --> 00:03:33.150 And soon, thousands of workers are expected to arrive from China to 54 00:03:33.150 --> 00:03:34.260 build the new plant. 55 00:03:34.270 --> 00:03:39.550 Even before this infrastructure is in place, BYD is charging ahead with EV 56 00:03:39.590 --> 00:03:41.150 sales in Europe.