Strategy change at BYD giant: Hungarian plant starts in Q4, while Turkish project is suspended
Chinese electric vehicle maker BYD is fundamentally reconfiguring its expansion plans on the European continent. The company is preparing to start assembling the first cars at its new plant in Szeged, Hungary, in the last quarter of this year. In order to channel all its resources to this strategic hub, the Asian giant has decided to temporarily freeze the project in Turkey.
European pace vs. Chinese speed: A one-year delay
Although BYD is known worldwide for the speed with which it sets up production lines in China, adapting to the bureaucracy and standards in Europe has brought its first logistical challenges. The actual start of production in Hungary is taking place about a year later than originally planned.
Last September, Stella Li, executive vice president of the company, optimistically declared that the Szeged plant – BYD's first passenger car plant in Europe – would launch the Dolphin Surf compact electric model on the market by the end of 2025.
Currently, the reality on the ground shows that the plans have been recalibrated. Stella Li recently confirmed that BYD is still in the stage of installing technological equipment on the production lines in Hungary.
Sales are exploding: Why Hungary is an absolute emergency
The decision to prioritize the Hungarian plant comes amid huge demand for BYD vehicles in Europe. The manufacturer is recording massive growth from one quarter to the next:
- Last year: BYD sales in Europe exploded by 270%, reaching a volume of nearly 188,000 vehicles.
- The first 5 months of this year: Deliveries on the European market maintained an accelerated pace, increasing by 144% and already exceeding the 100,000 unit threshold.
In addition to meeting this record demand, the main stake of the Szeged plant is of an economic and geopolitical nature:
Tariff shield: Producing electric cars directly on European territory will allow BYD to avoid punitive customs duties imposed by the European Union on electric vehicles made in China.
The project in Turkey, put on "pause"
In contrast to the acceleration of work in Hungary, BYD's plans for Turkey have been put on the back burner. In 2024, the company had publicly announced a massive investment of one billion dollars for the construction of a factory in Turkey, which was supposed to be inaugurated and start production this year.
However, the strategy has changed radically. Stella Li officially confirmed that work on the plant in Turkey has not yet started, the entire project being temporarily suspended to allow the manufacturer to fully focus on rapidly expanding production within the EU.
