BYD, the Chinese electric vehicle manufacturer, has selected Austrian steelmaker voestalpine as its primary steel supplier for its novel passenger vehicle plant in Szeged, Hungary. The agreement, confirmed Tuesday, marks the first major supplier deal for the factory, slated to begin operations in late 2025 with an annual production capacity of approximately 200,000 vehicles.
Voestalpine will provide flat steel for car bodies and outer skin components, according to statements from both companies. The choice of the Austrian firm was influenced by its geographic proximity to the Hungarian plant and the established quality of Austrian steel, according to Hungary Today.
The partnership was publicly affirmed by BYD Executive Vice President Stella Li and voestalpine CEO Herbert Eibensteiner. BYD established its European headquarters in Budapest earlier this year, anticipating local production. The Budapest hub also houses a research and development center focused on intelligent driving technologies and next-generation EV systems.
BYD’s expansion into Europe includes an existing electric bus factory in Komárom, Hungary, opened in 2016. The company currently offers ten models across more than 20 European markets, including the recently launched Dolphin Surf, positioned as one of the most affordable EVs in several countries.
Stella Li has indicated BYD’s ambition to be perceived as a European manufacturer within five years. She also recently stated to Bloomberg that the company does not anticipate a price war in the European automotive market, contrasting with the competitive landscape in China.
The Szeged plant represents a significant investment in BYD’s European strategy, and the selection of voestalpine signals a commitment to establishing a localized supply chain. The company expects to have over 1,000 retail outlets across Europe by the end of the year, having recently expanded into Romania, the Czech Republic, Slovakia, Croatia, Serbia and Estonia.
