The Chinese manufacturer of new energy vehicles (NEVs) is currently building two NEV production plants in Europe: one in Hungary and the other in Turkey.
BYD Executive Vice President Stella Li said in an interview with Automobilwoche earlier this month that the company is considering building a third plant to serve the European market within the next two years, but did not disclose the exact location.
According to Reuters, citing a source, Germany is a priority choice for BYD, although the issue is raising doubts within the company due to high labor and electricity costs, low productivity and low flexibility in the country.
According to the source, BYD is considering opening a third plant in Western Europe as it seeks to increase brand awareness and recognition among European customers as a local manufacturer.
According to the report, the company is also following the Chinese government’s directives not to invest in countries that maintain import tariffs. This means BYD is currently offering discounts to some EU member states, including Italy and France.
The degree of “pro-China” stance of individual countries in the next few years will play a crucial role in determining the location of BYD's third plant in Europe, according to a Reuters report today, citing a source familiar with the situation.
According to the source, the final decision on the third plant will also depend on BYD's sales performance in Europe and the capacity utilization of its Hungarian and Turkish plants.
The report notes that BYD's plant in Hungary is scheduled to begin production in October, and the Turkish plant in March 2026.
Source: Reuters
