Byd: the EU suspects unfair Chinese subsidies in the financing of a Hungarian factory
Byd, the second electric car manufacturer in the world, just behind Tesla, was a timid start in Europe. It must be said that the brand's models are sold at significantly less aggressive prices on the European market than elsewhere, in particular because of customs duties Compensators established by the EU against electric vehicles produced in China. They aim to counter subsidies paid by China to its manufacturers to allow them to practice low prices and flood the market.
Like other Chinese manufacturers with important ambitions in Europe, Byd has chosen to produce locally Its next cars sold on the old continent, especially to circumvent European sanctions. However, the Financial Times reveals that the first European factory in Byd, under construction in Hungary, is the subject of an investigation by the European Commission relating to suspicions of unfair subsidies by China.
Budapest was not informed of this survey, revealed to Financial Times By two sources close to the file, and which intervenes while Hungary maintains tense relations with the EU, especially against the backdrop of war in Ukraine. János Bóka, Hungarian Minister of European Affairs, told the British newspaper not to be surprised by this investigation: “It is known that any investment that takes place in Hungary appears very quickly on the commission's radar, and the commission follows with redoubled attention each decision of state aid which takes place in Hungary.”
If the suspicions of the commission are proven, Brussels could force Byd to sell certain assets, to reduce its capacity, to reimburse the subsidy and, possibly, to pay a fine for non-compliance, indicates the report.
In addition to this Hungarian factory, where production must start this year, Byd also plans to assemble cars in Türkiye. Another factory will also be built in Europe, but its location remains to be confirmed.
