BYD is serious about its EU expansion plans. The company plans to switch completely to local production by 2028.
• Production for Europe until 2028 completely locally
• EU tariffs by European supply chains
• Start in the Hungarian plant at the end of 2025 with Dolphin Surf
Clear timeline for the change of production
BYD is determined to consistently implement its European strategy. As can be seen from the current statements by Stella Li, which, as an executive Vice President, leads the company’s European business, BYD is planning a complete localization of production. “We are practicing to become more European in production,” said Li at the IAA Mobility in Munich. When asked how long it will take for the entire needs for Europe to be covered from European factories, she replied: “Give us two to three years.”
The schedule is already concrete: At the end of 2025, production in the Hungarian plant in Szeged should start, with the compact electrical car Dolphin Surf as the first model will roll off the band. As can be seen from a report by Globe Newswire about the IAA 2025, Li confirmed that this is real proof that BYD remains in Europe. In 2026, production will follow in a second work in Turkey near Izmir.
Strategic response to EU tariffs
The BYD localization strategy is a direct reaction to the tightened trade conditions. The European Union had imposed punitive tariffs on electric cars produced in China last year because it assumes that Chinese manufacturers benefit from government subsidies. With local production, BYD can completely bypass these tariffs and save transport costs at the same time.
The company is working intensively to build a European supply chain. Li emphasized that BYD works with hundreds of local suppliers. This strategy differs from other Asian manufacturers such as Hyundai, Kia and Toyota, which run a mixed strategy in Europe with some locally manufactured and imported models.
BYD remains optimistic about Europe
Despite previously disappointing sales figures in Europe, BYD remains optimistic. As can be seen from a report by Ecomento, the company sold almost 50,000 vehicles in the EU, Great Britain and the Efta markets in 2024 – a significant increase compared to the 18,000 vehicles from 2023, but still far behind the market leader MG, which dropped 243,390 cars.
BYD still plans a massive capacity expansion: the Hungarian work should be able to produce 150,000 vehicles annually in a first phase, later 300,000. The Turkish work will have similar capacities. In addition, BYD is already considering a third production plant in Europe and its own battery factory. Li announced that a decision about the third location could be made in one and a half to two years.
While BYD originally planned to sell only pure electric cars in Europe, the company is now responding to the weakening demand for fully electric models. In the next six months, three to four new plug-in hybrid vehicles are scheduled for the European market. At the same time, BYD is also expanding its “Flash Charging” quick charging network, with the aim of 200 to 300 installations until the second quarter of 2026.
D. Maier / Redaktion Finanzen.net
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