BYD Announces Production of Atto 2 in Europe: Impact on Portuguese Market

BYD Announces Production of Atto 2 in Europe

BYD, a global leader in the electric vehicle market, has announced the European production of one of its most affordable models, the BYD Atto 2, at its plant located in Hungary. This decision marks a significant step in the brand's expansion strategy on the European continent and has direct implications for the Portuguese electric vehicle market.

Why Is This Relevant for Portuguese Buyers?

Local production of the Atto 2 in Europe could lead to a reduction in the final price for consumers, thanks to decreased costs associated with import tariffs. Currently, the model is sold starting at €32,990 in other European markets, and it is estimated that the price for the Portuguese market will be slightly higher, around €34,000, due to VAT differences.

Production Details

BYD's plant in Szeged, Hungary, is scheduled to begin production of the Atto 2 in the second quarter of 2024. This site has an annual production capacity of 300,000 vehicles, highlighting BYD's ambitions in Europe. The Atto 2 will be produced exclusively in its electric version in Europe, while the plug-in hybrid variant will continue to be manufactured in China.

Competition and Market Positioning

The BYD Atto 2 is a compact SUV that will compete directly with models such as the Peugeot e-2008, Volkswagen ID. Cross, and Skoda Epiq. Local production not only helps BYD avoid significant import tariffs, which reach 27%, but also could make the Atto 2 eligible for tax incentives in markets like France.

Implications for the Portuguese Market

For Portuguese buyers, European production of the Atto 2 means potentially more competitive prices and quicker availability. The electric vehicle market in Portugal has been growing, and options like the Atto 2, with its attractive features and affordable price, can further stimulate this growth.

What to Expect in the Future?

BYD plans to further expand its production in Europe, with the possibility of opening a third factory, possibly in Spain. This expansion aims to increase production capacity and reach new markets, consolidating BYD's presence on the European continent.

In summary, BYD's decision to produce the Atto 2 in Europe is good news for Portuguese consumers, who may access an affordable electric vehicle with fewer import-associated costs. With the growing popularity of electric vehicles in Portugal, the Atto 2 could become a popular choice among local consumers.