BYD describes the impact of EU tariffs on imported Chinese EVs as “temporary damage” and anticipates it will be the best-positioned Chinese brand in the coming years thanks to local production plans and a flexible powertrain offering.

The brand, which has grown rapidly in Europe over the past two years, is due to open a new factory in Hungary by the end of next year, and another in Turkey soon after.

These will allow it to build European market cars in Europe and avoid the substantial tariffs imposed on Chinese-manufactured cars by the EU.

Speaking at the launch of the Seal U DM-i plug-in hybrid, the first PHEV to join BYD’s European and UK line-up, special European advisor Alfredo Altavilla told Autocar the brand was not happy with the tariffs but said plans were in motion to circumvent them.

“This is going to be temporary damage for BYD,” he said. “In less than a year from now we will become officially a European manufacturer.

“So if you ask me, are you happy with the tariffs? No, but the damage is going to be more limited for BYD than for other Chinese OEMs in terms of volume ambitions. BYD has been the most cooperative Chinese brand with the European Commission. We get the ‘benefit’ of a lower tariff compared with other Chinese OEMs.”

BYD’s cooperation with the European Commission appears to have paid off, at least in the short term.

Following the EU’s decision to raise the tariffs earlier this year, the firm currently pays 17.4% on imports on top of the basic 10% duty applied to all other Chinese brands.

Geely, owner of Polestar, Volvo and Lotus, meanwhile, is required to stump up an extra 19.9%, while MG parent SAIC’s rate is a whopping 37.6%. BYD will be the first Chinese brand to open its own bespoke production facility in Europe.

The move will help cement BYD as a ‘local’ company, a goal outlined to Autocar earlier this year by the company’s president, Stella Li.

“Of course, the factories will have a big impact,” said Altavilla. “This is not just for the tariffs.” He added the move will also help BYD move “much faster” to integrate “European needs and European tastes” into the next generation of its cars.