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BYD Co. has been contacted by the Italian government as part of the country\u2019s efforts to attract a second car manufacturer beyond Fiat maker Stellantis NV.\u00a0<\/p>\n
\u201cWe have some contacts to discuss about that,\u201d Michael Shu, managing director of BYD Europe, said in an interview at the Geneva International Motor Show. The need for a second European plant \u201cdepends on our sales \u2014 now we\u2019re making very good progress.\u201d<\/p>\n
Prime Minister Giorgia Meloni\u2019s government has plans to attract a new major carmaker to Italy after Stellantis signaled it may move some production to lower-cost countries. Manufacturers are under pressure to become more efficient in the EV transition with battery vehicle prices still far higher than equivalent combustion-engine cars.<\/p>\n
A government representative for the industry ministry declined to comment on discussions with BYD.<\/p>\n
Industry Minister Adolfo Urso said this month the country \u201cbacked the arrival\u201d of a second producer, calling it \u201ca project we have been working on for months with meaningful talks with foreign partners.\u201d<\/p>\n
BYD, which overtook Tesla Inc. as the world\u2019s biggest EV maker last year, in December confirmed plans to build a factory in Hungary to help boost sales in the region. It\u2019s too soon to say when and if a decision will be made on a second one, Shu said. BYD wants to build up its local supply network in Hungary as part of that push.<\/p>\n
\u201cWe want to go as deep as possible\u201d with the local supply chain, Shu said. \u201cEverything we do is for localization.\u201d<\/p>\n
The move has raised the prospect of yet another competitor to Europe\u2019s domestic carmakers, particularly for Volkswagen, Stellantis and Renault that serve the competitive mass-market segment.<\/p>\n
BYD\u2019s investment in Hungary comes a few months after the European Union announced a probe into state subsidies to Chinese EV makers, and could help the company avoid any additional import tariffs. The manufacturer has been cooperating in the investigation, Shu said.<\/p>\n
\u201cWe have strong products and technology and supply-chain management flexibility,\u201d he said. \u201cBased on facts, I don\u2019t think\u201d the company\u2019s success in Europe \u201cis coming from subsidies.\u201d<\/p>\n<\/div>\n