(Yicai) June 26 -- Voestalpine will supply steel sheets to BYD’s car factory in Hungary, the Chinese electric automaker said, making the Austrian steel producer one of the plant’s first suppliers.

The supply agreement the pair signed two days ago marks a significant step in BYD's localization strategy as it continues to expand operations across Europe, the Shenzhen-based company said yesterday. BYD has long been committed to partnering with high-quality and competitive local suppliers to make vehicles on the continent and serve the European market, it added.

“I'm delighted that we will be working with Voestalpine, a company that has a long history of innovation and a commitment to decarbonization and sustainable CO2 reduction," Executive Vice President Stella Li said.

The car plant that BYD is building in Szeged, Hungary’s third-largest city, is its first in Europe and is designed to produce 200,000 vehicles a year. Construction work began last year and the first cars are expected to start rolling off the production line in the second half of this year.

“BYD has always been clear that we have come to Europe to stay in Europe -- and to produce here,” Li said. “Our commitment to the European market is strong and as we’re showing here, it goes far beyond pure car sales. Our factory in Hungary is at the heart of this process.

BYD has accelerated its European expansion since September 2022. BYD brand vehicles will be on sale in 29 European countries by the end of this year, and its sales network will include more than 1000 retail outlets, according to the company. Last month, BYD announced that it would set up its new European headquarters and research and development center in Budapest.

“We're applying a long-term vision here, with the goal of being seen by consumers, within the next five years, as a European manufacturer,” Li added.

Editor: Martin Kadiev