Chinese electric vehicle (EV) giant BYD has solidified its European expansion by partnering with Forvia, a French car parts supplier, for its second European factory in Türkiye. This strategic move, announced by Forvia, ensures a robust supply chain for essential Byd Car Parts as BYD ramps up its production capabilities in the region.
Forvia, recognized as the world’s seventh-largest car parts supplier by revenue, boasts a long-standing relationship with BYD. Having already secured supply deals for BYD’s first European plant in Hungary, this new agreement for the Türkiye factory underscores Forvia’s position as a key partner for BYD’s global ambitions. A significant portion of Forvia’s revenue, a quarter, is generated from Chinese sales, highlighting the importance of this market and these partnerships.
BYD’s ambitious $1 billion production plant in Türkiye, revealed in July, is projected to produce 150,000 vehicles annually. Located in western Manisa province, the facility is slated to commence operations by the end of 2026 and is expected to generate up to 5,000 direct jobs. This factory will require a substantial and reliable supply of byd car parts, ranging from essential components to intricate systems, and Forvia is poised to meet this demand.
Forvia’s extensive product portfolio is ideally suited to support BYD’s manufacturing needs. Their offerings include a wide array of byd car parts encompassing interior solutions that define cabin aesthetics and functionality, safety and lighting systems critical for vehicle operation and passenger security, and advanced mobility and powertrain systems vital for EV performance. Furthermore, Forvia supplies sophisticated software, hardware, and interface products that are increasingly integral to modern vehicles, alongside sustainable composite components that align with the growing emphasis on eco-friendly manufacturing in the automotive sector. This comprehensive range positions Forvia as a one-stop supplier for a significant portion of byd car parts.
Alt text: Forvia product range for automotive industry partners like BYD, including interior, safety, lighting, powertrain, software and sustainable components, crucial byd car parts.
Beyond BYD, Forvia is strategically expanding its collaborations with other Chinese automotive manufacturers establishing a footprint in Türkiye. Deals have been forged with Chery, another Chinese automaker reportedly finalizing plans for a Turkish factory, and Li Auto. Chery’s increasing European manufacturing presence, including planned bases in Spain, Italy, and Türkiye, was recently highlighted by Chery International President Zhang Guibing. His meeting with Turkish President Recep Tayyip ErdoÄŸan further emphasizes the growing automotive ties between China and Türkiye. State-owned SAIC Motor, parent company of MG Motor, is also reportedly in discussions with Türkiye, suggesting a broader trend of Chinese automotive investment in the country.
For Forvia, these contracts with Chinese manufacturers are particularly vital as they aim to counterbalance the current slowdown in auto demand from domestic European manufacturers. Investor confidence in Forvia’s strategy was evident as the company’s shares experienced a near 10% surge on Monday, coinciding with the announcement of the BYD deal and a new agreement with tech giant Xiaomi, who is venturing into the EV market.
Stephen Reitman, an analyst at Bernstein, noted the strategic importance of Forvia’s success in securing business with BYD outside of China. He stated that it alleviates concerns that Chinese automakers might favor domestic suppliers over international companies like Forvia as they expand into Europe. The Xiaomi contract is also noteworthy, marking Forvia’s entry into partnership with a tech company diversifying into the EV sector, a trend that is reshaping the automotive landscape. Xiaomi commenced deliveries of its SU7 electric vehicles in early April, signaling its serious entry into the EV market.
Forvia’s finance chief, Olivier Durand, emphasized the significance of the Xiaomi partnership during an investor call, stating, “Xiaomi is one of the key telecom companies entering now the EV and car market and it’s very good that we are able to extend our reach with Chinese manufacturers also with the latest ones.” This deal, along with the expanded BYD partnership for byd car parts, positions Forvia favorably in the evolving global automotive supply chain, particularly within the burgeoning EV sector and the strategic growth of Chinese automotive brands in Europe.
