China’s largest automaker, BYD Auto, announced at this year’s IAA Mobility 2025 show in Munich, Germany, that it is stepping up its expansion in Europe by strengthening its sales network in the region and increasing local production.
Shenzhen-based BYD, the world’s largest battery electric vehicle (BEV) manufacturer, said its sales in Europe increased threefold to 84,400 units in the first eight months of 2025, according to industry data, and the automaker is looking to increase volumes significantly in this region in the next few years as part of its global expansion plans.
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Despite overseas sales growing by 128% to 464,266 units in the first half of 2025, BYD’s exports from China are facing rising market protectionism in a growing number of countries, including in North America and in Europe. The EU currently imposes a 27% import duty of Chinese-made BEVs.
Stella Li, an executive vice-president at the company, told reporters that BYD plans to double the number of sales outlets in Europe to 2,000 in 2026, up from a projected 1,000 outlets at the end of 2025.
BYD is also scheduled to complete construction of a new passenger vehicle plant in Szeged, Hungary, in October 2025, where it plans to rapidly scale up local production in the next two years. The company already has a plant in operation in the Hungarian city of Komárom, which produces battery-powered trucks and buses.
BYD is also building a new passenger vehicle plant in Turkey, which is scheduled to become operational in 2026 – which will also supply the European market. The automaker currently sells 13 passenger vehicle models in Europe, up from six two years ago. By 2028, it plans to produce all the models it sells in the region locally.
Stella Li also confirmed that BYD is in discussions “with dozens of local component manufacturers” to establish a complete supply chain in Europe to support the company’s regional growth. She told reporters: “We are investing not only in vehicle plants but also in the supply chain. Our goal is to build a local ecosystem for European production.”
