China's auto market shrinks further as automakers set up shop in Europe

China's domestic automotive market is in a deep crisis, even as its manufacturers aggressively expand into Europe. The German newspaper Der Standard reports that Chinese carmakers are increasingly making inroads on the continent, though German manufacturers still hold a leading position.

BYD, a major Chinese electric vehicle manufacturer, is particularly notable in this expansion. The company is reportedly close to opening its first European car factory in Szeged, Hungary. Stella Li, Executive Vice President of BYD, recently confirmed to Reuters that the plant aims to begin operations in the last quarter of this year. However, the timeline has been subject to delays, with previous targets set for the end of last year and mid-2024.

The article notes that while German automakers still dominate the European market, the growing presence of Chinese brands like BYD signifies a shift in the global automotive landscape. This expansion comes as the Chinese auto market itself struggles, pushing manufacturers to seek growth opportunities abroad.

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Whether the date holds will be seen.