{
  "id": 16446970,
  "title": "BYD to build new factories in Europe to combat strict trade barriers targeting Chinese EVs",
  "url": "https://urgent.news/2026/10/25/byd-to-build-new-factories-in-europe-to-combat-strict-trade-barriers",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-25T08:00:09.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/china-evs/article/3372001/byd-build-new-factories-europe-combat-strict-trade-barriers-targeting-chinese-evs"
  },
  "original_language": "en",
  "account": "China’s BYD is set to establish new factories in Europe to assert a larger market share, amidst fiscal support reduction at home and escalating trade barriers globally, according to an executive. Europe is deemed a significant regional market for BYD, and its vice-president, Liu Xueliang, assured that tariff hikes would not impede local consumers from choosing BYD. Liu also reiterated BYD’s proactive expansion of its local presence, with the launch of new plants in Europe anticipated “soon”. This aligns with a strategy unveiled by BYD’s overseas CEO, Stella Li, earlier this month, which highlights the initiation of mass production in Hungary by the end of the year. This commitment to local production in Europe follows EU’s announcement in mid-October to impose quotas on hybrid cars imported from China, following the hike in tariffs on Chinese-made electric vehicles to 45.3 percent. Additionally, China reduced the value-added tax rebate rate on exports of new energy vehicles from 13 percent to 9 percent, starting April 1, 2027, which could further dampen the profitability of the EV industry. Despite these challenges, BYD expects the export tax rebate reduction to have minimal impact on sales in the market, thanks to its existing factories in Southeast Asia. The demand for EVs is expected to rise due to the global oil shock, and BYD aims to increase its overseas capacity. However, the company has yet to decide on whether to raise selling prices in overseas markets to offset the tax costs, as competition over pricing is intensifying. As of October, BYD’s planned capacities outside mainland China amounted to 1 million EVs, with only 30 percent in Europe. BYD’s share in the EU’s new car market rose to 2.4 percent in the first nine months of the year, up from 1 percent a year ago, following a surge in new car registrations. Despite the efforts to bolster exports to Europe, the diminishing demand at home resulted in a first-half net profit decline of over 20 percent year-on-year to 12.3 billion yuan. To enhance profitability, BYD hastened the overseas launch of its premium model, Denza Z9GT, with a starting price of HK$998,000 in Europe, significantly higher than its price in mainland China. However, Liu admitted that BYD faces numerous challenges in overseas markets as it strives to overtake Japan’s Toyota and become the world’s leading carmaker by 2030, a goal announced by chairman Wang Chuanfu during an annual shareholders meeting in June. Instead, Liu emphasized that reducing dependency on fossil fuels through the mass EV production is more significant than attaining the top spot.",
  "summary": "China’s BYD will build new factories in Europe for a bigger market share, as the world’s largest electric vehicle (EV) maker faces fiscal support pullback at home and rising trade barriers overseas, according to an executive. “Europe is a very important regional market for BYD. We will not let tariff increases affect local consumers’ choice of BYD,” said Liu Xueliang, vice-president at the…",
  "key_points": [
    "BYD plans to build new factories in Europe to expand market share.",
    "EU imposes quotas on hybrid cars imported from China, raises tariffs on EVs.",
    "BYD aims to increase overseas capacity despite challenges in overseas markets."
  ],
  "editors_take": "Establishing local manufacturing hubs allows BYD to bypass rising European tariffs and trade quotas while insulating its market share from diminishing domestic subsidies and export tax rebates.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}