HANOI — Chinese electric car maker BYD Auto Co. is planning to build a factory in Vietnam to make auto parts, three people familiar with the plan told Reuters. Southeast Asia as part of global expansion.
The investment in northern Vietnam will exceed $250 million and expand parent company BYD’s presence in Vietnam, where the electronics sector produces solar panels, one of the people said.
The move highlights a broader trend. Manufacturer To reduce its exposure to China amid the production disruptions caused by trade friction with the US and Beijing’s previous COVID-19 lockdown.
BYD declined to comment.
The Xi’an-based automaker has surpassed rival Tesla. EVs It more than doubled in China last year and is expanding to Asia and Europe, including Singapore and Japan.
Backed by Warren Buffett’s Berkshire Hathaway, BYD makes both plug-in hybrids and pure electric vehicles. Like Tesla, BYD controls much of his supply chain, including battery production, a strategy that sets it apart from incumbent automakers.
In September, the company announced that it will build an EV assembly plant with an annual production capacity of 150,000 units in Thailand from 2024.
By investing in Vietnam, BYD aims to increase production capacity, control costs and diversify production from operations in China where demand is strong.
Talks are underway to select a site for the Vietnam plant, the sources said, asking not to be identified because the talks are confidential. Construction is expected to begin by mid-year.