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CompaniesBayerische Motoren Werke AGBYD Co LtdMercedes-Benz Group AG DEBRECEN, Hungary, Nov 5 (Reuters) - China poses a "very significant" competitive challenge to German carmakers, the head of luxury carmaker BMW's (BMWG.DE), opens new tab new Hungarian plant said on Wednesday, with Chinese rival BYD (002594.SZ), opens new tab soon to start production in the country. Under right-wing Prime Minister Viktor Orban, Hungary has become an important trade and investment partner for China, in contrast with some other European Union nations considering becoming less dependent on the world's second-largest economy. Advertisement · Scroll to continueReport Ad BMW said it would start series production of its iX3 electric model at a plant in the eastern Hungarian town of Debrecen from the end of October, becoming the third major German brand to enter Hungary after Audi (VOWG.DE), opens new tab and Mercedes-Benz (MBGn.DE), opens new tab. "China constitutes a very significant challenge, all of us can agree on that," BMW's Hungarian Chairman and Chief Executive Hans-Peter Kemser told a conference alongside local leaders from Audi and Mercedes-Benz. "We must also see that Chinese manufacturers are arriving in Europe. That is a fact," Kemser said through an interpreter. China's BYD plans to start production at its new electric-vehicle plant in southern Hungary by the end of 2025, while also investing $94 million to triple its local electric bus output. Advertisement · Scroll to continue Michael Breme, Chief Executive of Audi's Hungarian unit, said western manufacturers had lost market share in China and local brands now account for two-thirds of the market there. "The Chinese market is simply too important to give up on," Breme said. "We need to find new strategies in the local markets." Zoltan Guth, head of communications and external affairs at Mercedes-Benz Manufacturing Hungary, said the brand also aimed to preserve its market share in China with new or redesigned models to be launched in coming years. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2139381526 About ConnatixV2139381526 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Reporting by Gergely Szakacs Editing by Alexandra Hudson Purchase Licensing Rights Gergely SzakacsThomson ReutersGergely reports on central European economics, central banking and government policy, with content usually appearing on the Macro Matters, Markets, Business and World sections of the website. He has nearly two decades' worth of experience in financial journalism at Reuters and holds advanced degrees in English and Communication.EmailXInstagramLinkedin
