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BYD slows plans to build Vietnam factory
BYD has slowed down its plans to build an electric vehicle factory in Vietnam, a manager of the industrial park where the factory was to be built has just declared at a shareholders meeting.
In May 2023, the Vietnamese government indicated that the Chinese electric vehicle manufacturer had decided to build a factory to manufacture and assemble electric cars in the Vietnamese province of Phu Tho, where the company already has a factory producing tablets for Apple .
“Due to its strategy and the slowdown in the electric vehicle market, BYD has slowed down (its plans) to start construction,” said Luong Thanh Tung, vice president of Gelex Group, the company that manages the industrial park. where BYD would build the new factory.
Speaking at a shareholders’ conference in Hanoi, Tung also recalled that after lengthy negotiations, BYD agreed to reserve 100 hectares of commercial land in the Phu Ha industrial park to build an electric vehicle factory. .
Search for an “appropriate” moment: the drop in demand for EVs weighs on the decision
After delays inherent to the length of the negotiations, the two parties are now looking for “an appropriate time” to start the project, also indicated the Vice-President of the Gelex group. Without BYD headquarters in China having commented on the subject until now.
Growth in the global electric vehicle market is expected to slow this year due to lower government subsidies.
Vietnam, Thailand and Indonesia
The Vietnamese government’s announcement regarding BYD’s investment plans followed a visit by BYD head Wang Chuanfu to Vietnam last May. The statement did not indicate a start date or the size of the investment for the project. According to the Vietnamese government, during a meeting with Vietnamese Deputy Prime Minister Tran Hong Ha, Chuanfu said – again on this date – that he hoped for “favorable conditions to complete the investment procedures”.
BYD is meanwhile building an electric vehicle factory in Thailand and plans to build electric vehicle facilities in Indonesia. Last year, the manufacturer sold more than 3 million electric vehicles worldwide, including 100% electric vehicles and plug-in hybrids.
Our opinion, by leblogauto.com
This downsizing is like a “symbol of current times”, confirming a real drop in demand for EVs.
The fact remains that like many Chinese manufacturers, BYD has bet big, or even almost everything, on electric vehicles. What would happen to these companies in the event of a comeback in thermal energy?
Sources : Reuters
To sum up
Starting to run out of steam for BYD? The Chinese manufacturer is slowing down its plans to build an electric vehicle factory in Vietnam.
This downsizing is like a “symbol of current times”, confirming a real drop in demand for EVs.
The fact remains that like many Chinese manufacturers, BYD has bet big, or even almost everything, on electric vehicles. What would happen to these companies in the event of a comeback of thermal energy?