Chinese automaker BYD is set to bolster its European presence by starting local production of its Dolphin and Atto 3 electric vehicles (EVs) next year. The vehicles will be manufactured at a new facility in Hungary, marking a significant step in BYD’s strategy to deepen its footprint in Europe. The plant is expected to begin ramping up production by late 2025, according to Stella Li, BYD’s European chief.
The Hungarian facility was initially planned to produce BYD’s compact Seagull EV, but the focus has shifted to models like the Dolphin and Atto 3, which are expected to attract greater demand. Speaking to German business magazine Capital, Li also revealed plans for a third European-built model, tentatively referred to as the “Atto 2.” This vehicle, likely a rebranded version of the Yuan Up available in China, is smaller than the Atto 3 and designed with a rugged aesthetic, similar to the Mercedes-Benz GLB. The Seagull will follow as the fourth model produced at the site.
BYD’s move to localize production comes amid a slowdown in EV sales across Europe in 2024 and the introduction of tariffs on Chinese-made EVs. To adapt, the company is working to establish a robust European supply chain. This includes assembling battery packs in Hungary and Turkey, while sourcing battery cells from China. Additionally, BYD plans to expand its European lineup by offering more plug-in hybrid options to appeal to a broader range of consumers.
Li emphasized BYD’s commitment to building the majority of its vehicles sold in Europe locally. The company’s strategic approach reflects its ambition to challenge established European automakers while navigating the evolving dynamics of the regional EV market.
