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To further circumvent these tariffs, Chinese companies are investing in factories across Europe. For instance, BYD is constructing a facility in Hungary designed for the assembly of cars from pre-manufactured kits, thereby negating the need to pay tariffs imposed on fully assembled vehicles. By setting up local assembly plants, manufacturers not only avoid tariffs but also cater to the rising demand for hybrids in the region.
Additionally, there are plans by other automakers to establish plants in Turkey, allowing for strategic positioning within Europe. These factories will serve as assembly points where components shipped from China can be pieced together and sold at a lower cost without the burden of high tariffs.