The Chinese company BYD could become the next cult brand in the automotive industry after Tesla. They are already number one in the world when it comes to electric cars, mainly thanks to the domestic market. BYD is now also active in Austria and is building a factory in Hungary. Suppliers from Austria are hoping for many orders.
As part of the ‘BYD Supplier Conference Vienna’, top executives from the Chinese manufacturer met with almost three dozen Austrian automotive suppliers. Specifically, it was about possible partnerships for the first BYD car factory in Europe, which is currently being built in Hungary and is scheduled to go into production from the end of 2025.
Prominent names such as Amag, AT&S and Magna as potential BYD partners
Domestic companies seeking supplier orders from BYD include names such as Amag, AT&S, AVL List, Engel Austria, Fronius, the iSi Group and Magna.
Hansjörg Mayr, board member of local BYD importer Denzel, was pleased with the “opportunity to bring Austrian companies together with a global player. BYD already trusted in battery technology in 1995. And we in Austria have such good, high-quality companies, especially in the automotive industry. I am confident that Austria has a good chance as an industrial location if the companies work together.”
The capacity of the factory in Hungary will be 150,000 to 300,000 cars per year. The example of China shows where the journey should ultimately go. Mayr: “BYD is the market leader in e-mobility there, every fourth electric car in China comes from a BYD factory. A whole series of factories are currently being built all over the world; there is also a plan for a factory in Turkey, for example.”
The BYD models in Austria are currently still offered at the original prices because they are stock vehicles. However, prices could increase in the fall because the tariffs imposed by the EU – BYD is affected by a tariff of 17.4 percent – would come into effect.
Denzel CEO Gregor Strassl still hopes for an agreement between the EU and China in the fall: “Denzel stands for free trade.” That has advantages: “Consumers have a wider choice and cheaper prices.”
BYD advertises electric cars that cost the same as comparable combustion engines
BYD advertises that it offers electric cars at the same price as cars with combustion engines of a similar size (see price list). For example, the ATTO 3 is an SUV in the same class as the VW Tiguan. According to BYD, the SEAL is a mid-range sedan in the same class as the BMW 3 Series.
Brian Yang, Assistant Managing Director of BYD Europe, makes it clear: “BYD has come to Europe to stay because: BYD wants to become a locally rooted European brand and wants to work with European partners in the automotive supply industry. We are investing several billion euros in Hungary. The Austrian automotive supply industry is highly professional and in many areas one of the most innovative in the world. We are looking for exactly such partners.”
Austrian companies could supply a wide range of products, from steel to cables and semiconductors
The range that domestic companies can cover varies “from steel for chassis and bodies to cables and connectors to airbags and semiconductors”. According to Yang, BYD will enter into further negotiations with many companies in the coming weeks “as we see great potential in Austrian partners”.
Florian Danmayr, manager of the Upper Austrian automotive cluster: “Our 280 companies generate almost 20 billion euros in turnover and are of enormous importance to the economy. With an export share of over 80 percent, we are dependent on international cooperation and must reach out to the outside world.”
His industry colleague Manfred Kainz, partner of the Styrian automotive cluster AC Styria, echoes the same sentiments: “Many years ago we had a supplier day in Styria, then with Steyr Daimler Puch, later Magna. And the result was a success story. I see the same opportunity here now.”
BYD quickly became the third strongest electric car brand in Austria
BYD only started as a brand a little over a year and a half ago and managed to sell 1,024 cars last year, something no brand has ever achieved in such a short time. This year, sales in the first half of the year have already increased to 1,834 new cars registered, making BYD the third strongest electric car brand in Austria after Tesla and BMW (see graph).
Our best selling BYD car so far is the ATTO 3, as it has been available since its introduction. The SEAL and the “SEAL U” are currently the best sellers.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
