France Open to BYD Factory: Chinese Automaker Considers European Expansion
- by techtimes
- May 06, 2024
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06 May 2024, 12:05 pm
In a meeting with automobile CEOs on Monday, French Finance Minister Bruno Le Maire signaled openness to BYD opening a facility in France.
Le Maire stressed France's openness to industrial initiatives and extended a cordial welcome for BYD and the larger Chinese car sector to make investments in the nation.
The official noted that the Chinese auto industry, including BYD, "are very welcome in France." Le Maire's statement coincided with Chinese President Xi Jinping's Paris state visit, per Reuters.
This development comes after the Chinese EV maker reported a drop in revenue due to declining EV demand and a pricing battle in China. The company reported $630m in first-quarter earnings, down 47% from the previous quarter.
Chinese EV Maker Earnings Drop
BYD and Tesla compete to sell the most EVs. The US giant recovered its crown last month after losing to a Chinese competitor late last year.
In the first quarter of this year, Shenzen-based BYD sold 300,000 battery-only cars, down from a record 526,000 in the fourth quarter of 2023, according to BBC.
As China's economy slows, BYD and its rivals have been fighting a pricing war for market dominance. The corporation, funded by Warren Buffett's Berkshire Hathaway, has lowered pricing on several of its latest models to entice hesitant automobile customers.
BYD has also been expanding into new markets to offset weaker Chinese demand.
Last year, the EV company exported 240,000 cars in 2023 and targets to double the figure in 2024. However, the Chinese carmaker's aggressive expansion into other markets has angered the US and European governments, which want to defend national automobile manufacturers.
BYD offers higher-end models to expand its product line and boost exports. The firm showcased its latest premium vehicles at the Beijing auto show this week.
To offset the effects of lower domestic demand, BYD has lowered the price of a few models to attract buyers-especially those who are cautious in light of the current economic climate.
Counteracting the weaker demand in China, BYD has also sought development into other markets; as a result, the business exported 240,000 vehicles in 2023 and is targeting a significant increase in exports this year.
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