Forvia, the seventh-largest auto parts supplier in the world, announced on Tuesday that it will expand its collaboration with Chinese battery manufacturer BYD to the European market.

According to Forvia, the two businesses will collaborate at BYD's new plant in Hungary as an expansion of their ongoing Asian collaboration.

In a statement, Patrick Koller, CEO of Forvia, expressed the company's confidence that this expansion will spur more innovation and growth in the European market, noting that their partnership had previously produced notable successes in Asia.

Hurt by the slowdown in global auto sales, auto component manufacturers like Forvia are attempting to capitalize on the fact that Chinese automakers are expanding and attempting to take on more established competitors locally.

Via seven partner operations spread around China, Forvia currently provides BYD's Asian automotive production with car interiors, seating, electronics, and software. The project also involves a new seat plant in Thailand and a specialized research and development center in Shenzhen.

A representative declined to answer when questioned about the scope of the collaboration in Hungary and the products that Forvia will deliver.

In April, Forvia announced that it was in talks with other Chinese automakers seeking to establish themselves in Europe and that it was attempting to lessen its reliance on BYD following the carmaker's weakest quarterly profit growth since 2022 for the first three months of the year.