BYD is considering moving forward with a third factory in Europe, which may be located in Germany.
According to reports this Monday from “Reuters”, the Chinese brand aims to expand the number of production units for its models, and after Hungary and Turkey, it may proceed with a production unit in Germany, the largest automotive market in Europe.
It is worth noting that the Chinese automotive industry is setting up factories and vehicle assembly units in Europe, thus trying to circumvent the customs tariffs imposed by the European Union on imports of 100% electric vehicles produced in China, while also selling low-cost cars in the region at a time when demand in China, the world’s largest automotive market, is declining.
The same source adds that Germany is BYD’s main choice for establishing a new production unit in Europe; however, this choice seems to be questioned internally, given the high costs of labor and energy.
The decision regarding the third factory is expected to be announced later and may depend on BYD’s sales performance in Europe and the utilization of capacity in the factories in Hungary and Turkey.
It is also worth noting that the BYD factory in Hungary is set to begin production in October, while the production unit in Turkey is expected to become operational in March 2026. When fully operational, the unit will have a total production capacity of 500,000 cars per year.
