China's EV maker BYD debuted its amphibious EV at the Geneva International Motor Show.
BYD showcased its Yangwang U8 luxury SUV at the Geneva International Motor Show. The vehicle can rotate 360 degrees in place and even navigate on water, posing competition to Mercedes-Benz's G-Class and Land Rover's Defender as it enters the luxury vehicle market.
At the end of 2023, BYD confirmed its plans to open its first electric vehicle production base in Europe in Hungary to boost local sales. Now, it has been reported that the Italian government has reached out to the Chinese EV elephant to bring in a second automotive manufacturer aside from Fiat's parent company, Stellantis.
BYD's head in Europe, Michael Shu, said there have been discussions between the two parties regarding this matter. Shu's admission comes after reports that Stellantis may shift some production to lower-cost countries.
It is reported that the Italian government is aiming to attract a new major automaker to Italy. Whether a second European factory is needed depends on BYD's sales performance, which is currently progressing well.
Italy's Minister of Industry, Adolfo Urso, stated in February that the country supports the arrival of a second manufacturer. Urso said Italy has been working on the project for months, engaging in substantive discussions with foreign partners.
Despite saying it is too early to determine when or if a decision will be made on the second factor, Shu said BYD hopes to integrate deeply into local supply chains. BYD's investment in Hungary could help the company avoid additional import tariffs.
EU recently announced an investigation into subsidies for Chinese electric vehicle manufacturers. Shu noted that BYD has been cooperating with the investigation.
Shu said BYD possesses strong products, technology, and flexibility in supply chain management. BYD's success in Europe stems from its efforts based on facts and not from relying on EU subsidies, he added.
After surpassing Volkswagen to become China's top-selling automaker, BYD is expanding into Europe to create new revenue streams and escape the intense price wars in the Chinese market. Meanwhile, existing European manufacturers are grappling with the complexity of transitioning to electric vehicles while also addressing cooling demands for innovative technologies.
With its Yangwang U8 entry into the European market, BYD aims to display its technological prowess while introducing more new models to Geneva, including an upgraded 5-seater Dolphin SUV and the Tang. This Tang is a pure electric vehicle that can travel up to 530 kilometers on a single charge.
BYD has been selling electric vehicles like the Dolphin in Europe. However, their level of success there is still hard to gauge.
BYD did not disclose relating to the Yangwang U8's price or supply chain. BYD's amphibious model is priced at around US$150,000 in China. BYD's models in Europe are often priced higher than in the Chinese domestic market.
Shu said that BYD's costs are decreasing as electric vehicle production increases. The company ships vehicles from China to Europe using its own vessels, further reducing costs.
It is reported that BYD's Hungary factory plans to produce at least 150,000 electric vehicles per year. This is the minimum production standard for general automotive plants.
