A Chinese car manufacturer plans to establish its third factory in Europe.

The Chinese automaker BYD Co. aims to establish a third factory in Europe. This initiative is intended to circumvent European tariffs on the import of electric vehicles from China.

Bloomberg reports on this development.

The manufacturer of electric vehicles, Seal and Atto 3, is preparing to commence production at its factory in Hungary by the end of this year. An additional site is under development in Turkey.

The company plans to produce batteries for electric vehicles within Europe. The location for the potential factory and the timeline are still under discussion.

BYD has expressed its ambitions to expand local production in Europe. This effort will help avoid the higher tariffs that came into effect last year. As a result, China's share of new car sales in Europe has declined.

According to data from the automotive analytics group Jato Dynamics, BYD has strengthened its position in Europe, surpassing the Chinese company SAIC Motor Corp. by 44%.

Reference. New EU customs tariffs on Chinese-made electric vehicles took effect on October 30 of last year. Additionally, anti-dumping duties were introduced on October 4, implemented due to violations of competitive conditions in the market resulting from substantial government subsidies for the industry in China. Anti-dumping duties can reach up to 40%.

Background. Previously, Mind reported that in Ukraine, demand for Chinese cars has decreased. We discuss which models remain popular.