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BYD, the world’s leading manufacturer of new-energy vehicles, has announced a significant partnership with voestalpine, a global steel and technology group. This agreement designates voestalpine as a major supplier for BYD’s first European passenger-car factory located in Szeged, Hungary, which is set to begin manufacturing vehicles by the end of 2025. The deal, confirmed in Vienna by BYD Executive Vice President Stella Li and voestalpine CEO Herbert Eibensteiner, is a cornerstone of BYD’s strategy to localize production within the continent.
Key Highlights
- Major Supplier Agreement: Austrian company voestalpine will supply high-quality sheet steel for BYD’s new passenger-car factory in Szeged, Hungary.
- European Production Hub: The Hungarian facility is central to BYD’s strategy of producing cars in Europe, for Europe, and is expected to start operations by the end of 2025.
- Localization Strategy: This partnership is a key step in BYD’s localization policy, focusing on sourcing from high-quality, competitive local suppliers as it expands its European presence.
- V2H Pilot in Austria: BYD has also announced that Austria will be the EU pilot market for its Vehicle to Home (V2H) technology, driven by strong customer demand and the country’s high use of solar energy.
Commitment to European Localization
The selection of voestalpine underscores BYD’s commitment to building a regional supply base for its European operations. The Austrian company was chosen for its geographical proximity to the Szeged factory and its reputation for producing high-quality steel. This agreement is one of the first to be confirmed for the new plant and marks a significant milestone in BYD’s preparations for European production as it continues to meet with hundreds of potential suppliers.
BYD’s long-term vision is to be recognized as a European manufacturer within the next five years. “Our commitment to the European market is strong and as we’re showing here, it goes far beyond pure car sales,” stated BYD Executive Vice President Stella Li. This strategy includes not only the factory but also a new European headquarters and a bespoke R&D center, both located in Hungary.
A Partnership for Sustainable Production
The collaboration is built on shared values of innovation and sustainability. Herbert Eibensteiner, CEO of voestalpine, noted, “With its high-quality steel products, voestalpine is an important partner for the global automotive industry.” He confirmed that starting this fall, voestalpine will supply high-quality flat steel for car bodies and outer panels from its Linz location, expressing confidence that this will lay the foundation for a long-term partnership.
Stella Li praised voestalpine for its “long history of innovation and a commitment to decarbonisation and sustainable CO2 reduction,” which aligns with BYD’s mission to provide zero-emission energy solutions.
Expansion and Innovation in Europe
BYD’s European expansion is rapidly advancing. The company plans to be on sale in 29 European countries with over 1000 retail stores by the end of 2025. The brand has already achieved considerable success in Austria, becoming the number one brand with private BEV buyers and capturing a 15% share of that market.
In a move to further its technological footprint, BYD has designated Austria as the pilot market for its Vehicle to Home (V2H) technology. This decision was prompted by Austria’s high adoption of solar energy and strong consumer interest, with dealerships reporting that half of their customers are inquiring about V2H availability to improve energy efficiency. More details on the project will be announced shortly.
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