Chinese electric vehicle manufacturer BYD has refuted recent reports suggesting a shift in its European production strategy, indicating a preference for Turkey over Hungary. Maria Grazia Davino, BYD’s Head of Europe, confirmed to the Tagesspiegel that the company remains committed to its previously announced plans for production ramp-up at its new factory in Szeged, Hungary, scheduled for this year.
The reports, which surfaced amidst speculation about lower labor costs in Turkey, alleged a potential postponement of mass production in Hungary until 2026 and an initial operational capacity below previously anticipated levels. BYD is also constructing a new facility in Manisa, Turkey, with an investment of one billion dollars.
Davino dismissed hopes within the European Union that import tariffs on Chinese electric vehicles might compel a change in strategy for manufacturers. Highlighting the significance of Europe as a key market for BYD, she emphasized the company’s decision to invest in local production, noting that these factors have no bearing on internal sales and marketing discussions.
While BYD’s market entry in Germany initially underperformed expectations, with sales of 6,323 new vehicles in the first half of the year, the company remains focused on establishing a significant brand presence in Europe. Davino stated that volume is crucial to achieving this goal, but that time is necessary for the brand to gain traction.
Looking ahead, BYD also intends to broaden its European offerings beyond solely battery-electric vehicles, increasingly focusing on hybrid powertrains, including range-extender plug-in hybrids which incorporate an internal combustion engine. Davino indicated that these hybrid models will remain a strategic priority for the company.