BYD delays Hungary plant production: Strategic shift to Turkey amid EV market changes

The carmaker will delay mass production for a year and run
the plant below capacity for at least the first two years, according to Reuters,
reflecting a more cautious European entry strategy amid softening EV demand and
rising trade tensions.

Hungary was originally intended to be the OEM’s gateway into
Europe, with the plant previously
due to begin production from next month. The Hungary plant, announced in
December 2023, was set to become BYD’s first passenger car manufacturing site
in Europe, following the company’s rapid global expansion and launch of several
EV models across European markets. The greenfield project near Szeged was
widely viewed as a strategic move to reduce logistics costs and increase
localisation for European customers, with plans to produce models such as the
Seal and Atto 3.

Now, although unconfirmed, it seems that BYD may be shifting
its focus to Turkey instead. Turkey could be a strategic move to reduce distance
across BYD’s supply chain, with the port of Izmir ideally located to receive
parts from China with onward shipping to Europe via land or sea.

Turkey could also be a nearshoring move, helping the
carmaker to enter the European market via the country. Last year, BYD signed a
$1bn deal with Turkey to build a factory in Manisa with capacity for 150,000
vehicles annually. Turkey also has a customs union agreement with the EU,
allowing the OEM to potentially skirt tariffs. 

Automotive Logistics has contacted BYD for comment.