Business
BYD Postpones Hungary Output, Fast-Tracks Turkey Plant Ramp-Up
BYD (HKG: 1211, OTCMKTS: BYDDY) is reportedly delaying mass production at its new electric vehicle (EV) plant in Hungary while fast-tracking operations at its upcoming facility in Turkey, due to cost considerations.
According to a Reuters report citing two sources familiar with the matter, BYD’s €4 billion ($4.64 billion) plant in Szeged, Hungary, will not begin mass production until 2026 and will operate below capacity for at least its first two years. Initial output is expected to be only in the tens of thousands of units, with a moderate increase in 2027 still falling short of full capacity.
BYD announced the Szeged plant in December 2023 as its first European production site for new energy passenger vehicles (NEVs). A land pre-purchase agreement was signed with the Szeged government in January 2024, and the plant was expected to be operational within three years. Plans to install production lines by September 2024 have since been postponed, with equipment delayed at BYD’s manufacturing hub in China.
Models expected for production include the Atto 2, Atto 3, Dolphin, and the low-cost Seagull, according to sources.
Meanwhile, BYD is accelerating plans at its $1 billion plant in Manisa, Turkey, originally slated for launch by late 2026 with an annual capacity of 150,000 units. A source said the Turkish plant will outproduce the Hungarian plant as early as 2026, with output expected to exceed 150,000 units in 2027 and ramp up further in 2028.
Vehicles built in Turkey will be sold in Europe and exported to the EU without incurring tariffs, thanks to a customs union agreement between the EU and Turkey. This shift comes amid the EU’s recent imposition of additional tariffs on Chinese EV imports, including a 17% tariff on BYD’s vehicles, on top of the standard 10%.
The strategic pivot highlights the economic and regulatory challenges Chinese automakers face when establishing production in Europe—namely high labor and energy costs.
In Turkey, BYD plans to produce several NEVs, including the all-electric Seal U SUV, Sealion 5, and two plug-in hybrids: Seal U DM-i and Seal 06 DM-i. The company also intends to build a research and development center alongside the manufacturing facility.
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