Some random thoughts on BYD et al. investment in Hungary and Turkey.
BYD is investing 500mil euro in Hungary. BYD announced upcoming 1B dollar investment in Turkey.
Huawei is investing 1.5B dollar in Hungary. Huawei has invested 1B dollar in Turkey.
CATL is investing 7.6B euro in Hungary. CATL announced 4.4B dollar in Turkey.
Even though EU would never officially allow Turkey to join, Turkey continues to enjoy EU candidate status. Since Turkey is an indispensable part of NATO, I don't think EU will cancel its candidate status ever.
Serbia is becoming another beachhead for Chinese companies to march onto Europe.
Then relating to recent EU tariffs on MIC EVs, it is more political noises than economic evolution. France has to lead this move because of Macron's ideology and fragile French auto industry. Ditto Spain. But Germany is in panic.
If we look at last 50 years of auto industry in US and China, it is clear that major markets never allow foreign imports to dominate for long. Local production and/or joint venture is the long-term game. Given cost advantages, Hungary (now), Turkey (being) and Serbia (future) are ideal candidates for Chinese companies to tackle Europe markets, in long-term viability contexts.
ASEAN, Europe, Latin America, Middle East, Russia ...... those markets are already large enough for MIC EVs. But the real funny story in this EV tariff saga is that, it is actually ICE cars that MIC autos are doing serious damages to the European/Japanese/Korean/American auto makers.
BTW, Huawei ADS 3.0 is around corner while Tesla FSD is not yet visible in China.
The game is so over ......
