Myongshin to produce Byton’s EVs in South Korea

South Korean auto parts supplier, MS Autotech, will contract manufacture Byton’s M-Byte SUV in South Korea through its subsidiary Myongshin.

As per the deal, Myongshin will produce more than 50,000 EVs for Future Mobility Corp (FMC), Byton's parent company.

According to Reuters, Byton's deal with Myongshin involves sales, production and investment. Myongshin will produce these EVs at Chevrolet's idling Gunsan plant which it bought earlier this year. The M-Byte SUVs are slated to roll-off production lines beginning 2021. These vehicles will be sold domestically as well as overseas.

The production version of M-Byte was showcased recently at the IAA 2019. The EV will go on sale in China later this year. After commencement of sales in China, the all-electric SUV will hit the US and European markets.

Currently Chinese built vehicles are subject to tariffs in the US, whereas South Korea has a free trade agreement with the US and Europe. This will help the EV start-up avoid tariffs when it begins selling in the US. Also, another advantage of manufacturing EVs in South Korea would be its strong domestic supply chain for these kind of vehicles.