BYD (HKG:1211, SHE:002594) plans to open a factory in Germany, its third in Europe, as the electric vehicles maker looks to offer lower-priced cars amid slowing demand in Europe, Reuters reported Monday, citing a source familiar with the matter.

Stella Li, BYD's executive vice president, discussed in a recent interview with Automobilwoche that BYD was considering another factory for Europe within two years without specifying a location.

The move comes as Chinese carmakers seeks to avoid import tariffs that the EU imposed on China-made electric vehicles last year, according to the report.

BYD did not immediately respond to a request for a comment, the publication said.

BYD's plant in Hungary will begin production in October, while the Turkey plant will start in March next year, the report said. The plants will have a joint capacity to produce half a million cars annually, Reuters said.

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