(January 2, 2024) Chinese automaker BYD, which bills itself as "the world's leading manufacturer of new energy vehicles (NEV)," is set to surpass Tesla as the worldwide leader in fully electric vehicle sales, according to a story in Automotive News. BYD's success is partly due because it offers half a dozen higher-volume models that cost much less than what Tesla charges for its cheapest Model 3 sedan in China.

BYD last week announced the next stage of its European strategy with the construction of a new manufacturing and production center in Szeged, Hungary. The state-of-the-art facility will be the first of its kind built by a Chinese automotive company in Europe and will have the advanced car production line. The factory will be built in phases and is expected to create thousands of local jobs, boost the local economy and support local supply chains.

The new production facility will incorporate the most advanced global technology and highly automated production processes to create a leading global new energy passenger vehicle manufacturing facility. The construction of this production centre is expected to have a positive impact on the local economy by promoting technological exchange and innovation between China and Hungary. BYD will also utilize its expertise in integrated vertical supply chains to help create a green ‘ecosystem’ locally.

Situated in the heart of Europe, Hungary is an essential transportation hub and boasts a rich history of expertise in the automotive industry. With a mature infrastructure and a well-established industrial foundation, Hungary has been chosen by several premium European manufacturers as a production location for passenger cars. This further supports BYD's decision to make Hungary the centre of European production operations.

The BYD brand has made significant progress in launching its passenger car operations in Europe. Within the first year, the company has established 230 retailer stores across 19 countries, introduced five new models (BYD HAN, BYD TANG, BYD ATTO 3, BYD SEAL, and BYD DOLPHIN), spanning the C to E segments, including hatchbacks, sedans, and SUVs. Additionally, three new models are planned to be launched within the next 12 months.

The passing of the EV sales crown also reflects the shift in competitive dynamics between Tesla’s Elon Musk, the world’s richest executive, and BYD’s billionaire founder, Wang Chuanfu. Whereas Musk has been warning that not enough consumers can afford Tesla EVs with such high interest rates, Wang is firmly on the offensive. BYD offers half a dozen higher-volume models that cost much less than what Tesla charges for its cheapest Model 3 sedan in China.