BYD Expands Its Electric Vehicle Manufacturing Footprint in Europe

Chinese electric vehicle (EV) manufacturer BYD is making waves in Europe with plans to establish a robust manufacturing presence on the continent.

Currently, the company is constructing two plants—one in Hungary and another in Turkey—with a potential third facility eyed in Germany, the epicenter of the European automotive industry.

This ambitious expansion positions BYD to directly compete with established giants like Volkswagen and BMW.

The plants will provide a combined annual capacity of 500,000 vehicles

BYD has seen tremendous growth in international sales, boasting record shipments of over 67,000 vehicles in February 2025 alone. This uptick comes even as overall vehicle registrations in Europe showed a slight decline, underscoring the increasing market share for Chinese brands, which jumped from 2.4% to 3.7% year-over-year.

However, the journey isn’t without hurdles. High energy costs in Germany and new European tariffs on electric vehicle imports from China could complicate BYD’s pricing strategies. To mitigate these challenges, local production will be key.

The Hungary plant is expected to commence operations in October, while the Turkey facility is slated for a 2026 launch. Together, these plants will provide a combined annual capacity of 500,000 vehicles, highlighting BYD’s ambition to scale.

Stella Li, BYD’s executive vice president, indicated that a third plant in Germany is a strong potential next step, although no timeline has been set. The move to buy out its German distributor last summer has also granted BYD greater control over pricing and supply.

While BYD is renowned for its affordable electric models like the Dolphin and Atto 3, the company is diversifying its portfolio to include luxury EVs, pickups, and smart SUVs, aiming for a wider appeal across the European market.

As BYD continues to solidify its European footprint, its strategy could drastically alter the competitive landscape of the region’s automotive sector.