BYD: Hungary plant progress in line with expectation

BYD: Hungary plant progress in line with expectation

China's BYD has announced a delay in the mass production start at its new electric vehicle (EV) factory in Hungary, according to multiple sources. The plant, located in southern Hungary, is now expected to begin mass production in 2026, operating below capacity for at least the first two years [1].

Meanwhile, BYD will start making cars earlier than expected at its new plant in Turkey, where labor costs are significantly lower. The plant in Manisa, western Turkey, is slated to produce more than 150,000 vehicles in 2027, far exceeding its initial production capacity [2].

The delay in Hungary is a setback for the European Union, which had hoped that its tariffs on EVs made in China would attract Chinese investments and well-paid manufacturing jobs. BYD's $4.64 billion plant in Hungary, which was initially expected to produce 150,000 vehicles in 2026, will now produce only a few tens of thousands of vehicles in the same year [1].

The shift in production from Hungary to Turkey is part of BYD's strategy to reduce costs and avoid punitive tariffs. The Hungarian plant was seen as a success for the EU's policy to make EV imports from China less attractive and create local value. However, the delay in production and the lower output will be a challenge for the region [3].

Despite the setback, BYD remains committed to its growth plans in Europe. The company plans to produce the Atto 3 and Dolphin EVs at the Hungarian plant, while the Turkish plant will manufacture the Seal U SUV and two plug-in hybrid models [2].

The shift in production also highlights the challenge for Chinese automakers to balance the higher wages and energy costs in Europe with the need to avoid punitive tariffs. Turkey, with its lower labor costs, has long been a popular manufacturing hub for major automakers [3].

References:
[1] https://www.marketscreener.com/news/byd-to-delay-mass-production-at-new-hungarian-plant-sources-say-ce7c5cdcd180f620
[2] https://www.investing.com/news/stock-market-news/exclusivebyd-to-delay-mass-production-at-new-hungarian-plant-make-fewer-evs-sources-say-4145176
[3] https://www.electrive.com/2025/07/22/byd-shifts-focus-from-hungary-to-turkey-for-european-ev-production/