BYD Plans $5.2 Billion Share Sale for European Expansion and R&D
BYD seeks to raise $5.2 billion in its largest share sale since 2002, aimed at funding overseas expansion and R&D. The company is establishing factories in Hungary and Turkey to alleviate EU tariffs affecting profit margins. Maria Grazia Davino emphasizes the need for a stronger presence in Europe as BYD targets growth in the competitive EV market.
Chinese electric vehicle (EV) manufacturer BYD is aiming to raise $5.2 billion through a share sale, marking the largest offering in Hong Kong in four years. This new share placement will also be the biggest fundraising effort by BYD since its listing on the Hong Kong Stock Exchange in 2002, as reported by Bloomberg News and South China Morning Post. The funds will be utilized for BYD’s overseas expansion and to enhance its research and development capabilities.
To mitigate the impact of EU tariffs on Chinese-made electric vehicles, BYD plans to increase its production facilities in Europe, where it already sells its cars. The company is establishing factories in Szeged, Hungary, and Izmir, Turkey, with a combined production capacity of 500,000 vehicles annually. This localized production strategy aims to bypass EU tariffs that have been hindering profit margins for Chinese manufacturers since tariffs ranging from 17% to 35% have been imposed.
Maria Grazia Davino, a senior executive at BYD, emphasized the importance of establishing a solid presence in Europe, stating, “We have to put down roots here,” in reference to their market strategy. BYD has seen significant success, reportedly selling over 4 million EVs globally in 2024, making it the best-selling EV manufacturer worldwide according to Statista.
BYD’s strategic move to raise $5.2 billion through a share sale highlights its ambition to expand its operations and bolster research in the competitive European EV market. By investing in local manufacturing in Hungary and Turkey, the company aims to circumvent EU tariffs and enhance its market position. This reflects BYD’s commitment to increasing its production capacity and establishing a stronger foothold in Europe amid growing global competition.
Original Source: oilprice.com
