BYD plans to build trucks in Europe to dodge tariffs

BYD, China's largest electric vehicle maker, announced plans on Monday to launch its first heavy-duty truck in Europe next year and eventually manufacture trucks on the continent, as the company seeks to position itself as a local player in the face of rising trade tensions.

"For the long term, we will produce everything we sell in Europe here locally," Stella Li, BYD's executive vice president and head of international business, said at the IAA Transportation press day in Hanover, Germany. "Once you move everything produced locally, it's okay. We become a European company."reuters+1

Tariffs and Trade Pressures

The announcement comes as European truck manufacturers push Brussels to extend protectionist measures to the commercial vehicle sector. Traton's ↗ 2.76% MAN brand has called on the European Union to impose tariffs on Chinese electric trucks similar to those already applied to Chinese-made passenger EVs, which currently face a 17% countervailing duty on top of the standard 10% import levy.investing+2

Li acknowledged the pressure but framed it as temporary. "We don't like this tariff because this did not benefit anybody, but we have to deal with it," she said, adding that tariffs amount to short-term obstacles until local production is established.reuters

Broader European Footprint

BYD's truck ambitions are part of a wider push into European manufacturing. The company is already building a passenger-car factory in Szeged, Hungary, where mass production is expected to begin next year. Li said BYD plans to offer European fleet operators a full package of services including financing, solar-powered charging infrastructure, and a workshop network with mobile roadside assistance.investing+1

The move reflects a broader trend among Chinese automakers establishing local production to neutralize tariff barriers. Chinese brands now hold 15% of Europe's battery-electric vehicle market, a threshold crossed for the first time earlier this year. The IAA Transportation fair, running September 15 through 20 in Hanover, features 21 truck manufacturers this year, up from 19 in 2024, with a growing contingent of Chinese exhibitors.iaa-transportation+2