BYD's European expansion: France rolls out the red carpet

BYD is the largest car manufacturer in China and one of the most popular brands worldwide in terms of the number of units sold. It is currently establishing its first European factory in Hungary, but the Middle Kingdom conglomerate has just received a very direct invitation from the French government.

On May 5-6, Chinese leader Xi Jinping arrived in France as Emmanuel Macron's guest. The main discussion topics were the war in Ukraine, Chinese investments, and trade between the nations.

On Tuesday, Jinping continued his journey, with Serbia and Hungary next on his European tour schedule. According to the latest reports from Reuters, the automotive industry was also an important point of this trip—including its French part.

In 2026, the first factory of the BYD brand—the largest Chinese car manufacturer—is expected to start operations in Hungary. However, that might not be the end of it. Quoted by the Reuters agency, French Finance Minister Bruno Le Maire acknowledged that he would see a plant of this conglomerate over the Seine and welcome the Chinese with open arms.

Chinese manufacturers are looking for ways to start producing their cars in Europe as soon as possible. This is due to an investigation by the European Union regarding subsidies the Chinese government grants to electric vehicle production. These subsidies are believed to undermine fair competition, which could drastically increase tariffs on cars manufactured in the Middle Kingdom.