BYD to delay production at new Hungarian plant, build fewer EVs

TimesLIVE

22-07-2025

China's BYD will delay mass production at its new electric vehicle factory in Hungary until 2026 and will run the plant at below capacity for at least the first two years, two sources familiar with the matter said.
China's No 1 carmaker will also start making cars earlier than expected at a new plant in Turkey where labour costs are lower, and will vastly exceed its announced production plans, one source said.
Shifting production away from Hungary in favour of Turkey would be a setback for the EU, which has been hoping its tariffs on EVs made in China would bring in Chinese investments and well-paid manufacturing jobs.
BYD's €4bn (R82,570,960,000) plant in Szeged in southern Hungary will start mass production in 2026, but only make a few tens of thousands of vehicles over the entire year, the sources said.
That would be a fraction of the plant's initial production capacity of 150,000 vehicles. It should eventually have a maximum capacity of 300,000 cars per year.
A third source confirmed the slower 2026 start-up.
BYD has said it will launch operations at Szeged in October, but has not said publicly when mass production will start. Production at Szeged is due to increase in 2027, but will be below planned capacity, the sources said.
The carmaker's $1bn (R17,644,850,100) plant in Turkey, which had been slated to start production at the end of 2026 with an annual capacity of 150,000 cars, will make more cars than the Hungarian plant next year, one source said.
Production at the plant in Manisa, western Turkey, will far exceed 150,000 cars in 2027 and BYD will greatly increase output again in 2028, the source said.
BYD did not respond to requests for comment.
The sources spoke on condition of anonymity because they were not authorised to discuss BYD's production plans publicly.
BYD is building the plant in Hungary to sell cars in Europe tariff free. All the cars it sells in Europe are made in China, and subject to EU anti-subsidy tariffs on Chinese-made EV imports on top of the standard 10% duty. In BYD's case, the total tariff is 27%.
Many cars made at the new plant in Turkey will also be destined for Europe and face no tariffs when exported to the EU.
A shift toward cheaper production in Turkey would highlight the challenge for Chinese carmakers that want to build cars in Europe to avoid punitive tariffs, but balk at the region's higher wages and energy costs.
Under right-wing Prime Minister Viktor Orban, Hungary, which will be the headquarters for BYD's European operations, has become an important trade and investment partner for China.
Turkey has long served as a low-cost manufacturing hub for major carmakers including Toyota, Stellantis, Ford , Hyundai and Renault.
In March, the Turkish government said China's Chery will invest $1bn in a plant with an annual production capacity of 200,000 vehicles.