Another Chinese Carmaker Enters Czech Market – BYD to Launch on April 1

Car imports from China to the Czech Republic more than doubled last year, with Chinese brands now holding 3.3% of the domestic market for new passenger cars.

The latest player to enter the scene is BYD, one of China’s largest car manufacturers, which will officially launch its brand in the country on April 1, 2024.

Czech buyers purchased 7,675 cars from China in 2023, compared to 3,516 in 2022.

The rapid increase in Chinese car sales is driven not only by competitive pricing but also by a notable improvement in quality and technology. As these brands continue to evolve, their share of the European market is expected to grow further.

Despite this growth, Chinese carmakers could face obstacles in Europe.

Klaus Zellmer, CEO of Škoda Auto, recently pointed out that US tariffs on Chinese imports imposed under Donald Trump’s policies might push Chinese manufacturers to shift their focus toward European markets. This could lead to increased competition for established European brands.

BYD’s European Expansion Plans

BYD is already making significant strides in Europe. The company is set to decide this year on the location of its third European factory. Its Hungarian plant will begin operations in October 2024, followed by another plant in Turkey in 2025.

The combined production capacity of these two factories is expected to reach 500,000 vehicles annually, according to Reuters.

However, BYD’s European expansion might not be without hurdles. The European Commission has launched an investigation into whether China provided illegal subsidies to support BYD’s Hungarian factory, according to a report by The Financial Times.

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