BYD Co. Limited (HK:1211) is currently engaged in advanced discussions with the Hungarian government to secure a “multi-billion-euro investment for a new electric car factory,” as reported by the Financial Times (FT).
Upon finalization, the company will make electric cars and batteries at a new facility in Szeged, located in the southern part of Hungary. The Hungarian Government, on the other hand, anticipates growth in employment in the region following such corporate investments.
The BYD share price is trading up by 1.6% on HKEX today at the time of writing.
Based in China, BYD Co. is among the leading manufacturers of electric vehicles and batteries in the world.
Beyond Borders: Eyeing European Expansion
While BYD already operates a bus manufacturing facility in the country, it is making additional investments in the car plant as part of its strategy to establish dominance in the European EV industry by 2030. In a previous interview with the Financial Times, the company’s CEO, Michael Shu, expressed the aspiration for BYD to become the “largest seller of EVs if possible.” The company aims to contribute to one in ten electric vehicle (EV) sales in Europe by 2030.
This move comes as part of the company’s global expansion plans to reduce its dependency on Mainland China. Recently, the company expressed its concerns regarding the stagnant sales in China. It delivered 302,000 units in the country in the last two months. As per the company filing, BYD’s deliveries outside China constitute only 3.3% of its overall total.
As a result, the company is actively pursuing an expanded global market share, aiming for dominance not only in China but also internationally.
Is BYD a Good Stock to Buy?
According to TipRanks, 1211 stock has received a Strong Buy rating, backed by a total of seven recommendations, of which six are Buy. The share price target is HK$323.02, which implies an upside of 60.4% from the current trading level.
