China’s BYD To Expand In Georgia
Plans to invest in manufacturing plants for electric and related vehicles, opportunities for downstream component manufacturers for products targetting EU markets
China’s BYD (Build Your Dreams) manufacturing company, the countries version of Tesla, plans to expand in Georgia, according to Georgia’s Ministry of Economy and Sustainable Development following meetings between Georgian Minister of Economy and Sustainable Development of Georgia Levan Davitashvili and BYD Europe’s Managing Director Isbrand Ho.
BYD are well known as a new-generation manufacturer of green and EV passenger, commercial, and rail vehicles as well as electronics and batteries, headquartered in Shenzhen, China. BYD has established over 30 industrial parks worldwide and has played a significant role in industries related to electronics, automobiles, new energy, and rail transit.
BYD tend to clump different business units together in development parks so that batteries and electronics subsidiaries can support the main final product manufacturing and production, while bringing in other external supporting businesses as preferred suppliers to assist. That in turn motivates downstream manufacturing investors to set up where BYD have operations, bringing additional foreign investment into their chosen location.
Davitashvili discussed Georgia’s business climate and investment opportunities in addition to the business support programs the government offers, and the development programs of the international institutions that already successfully operate in the country.
Meanwhile, BYD Company expressed their high interest in free trade agreements Georgia has with several countries, especially with the EU.
Georgia has a “Deep And Comprehensive Free Trade Agreement” (DCFTA) with the European Union that specifically includes transportation manufacturing.
Georgia is part of the Belt and Road Initiative and is linked to Baku Port by rail, with further maritime and rail links giving proven multimodal access to China via Kazakhstan. However, onward transportation problems to Turkey and the EU continue to create a bottleneck. BYD will be looking for solutions to these from the Georgian government if their planned export market is the EU.
Chris Devonshire-Ellis is the Chairman of Dezan Shira & Associates. The firm assists British and Foreign Investment into Asia and has 28 offices throughout China, India, the ASEAN nations and Russia. For strategic and business intelligence concerning China’s Belt & Road Initiative please email firstname.lastname@example.org or visit us at www.dezshira.com