BYD is evaluating plans for a third vehicle plant in Europe as the European Union imposes higher tariffs on electric vehicle imports from China, a Bloomberg report said.
The Chinese automaker is also considering battery production in Europe but has not finalized a timeline or location, according to Stella Li, a senior BYD executive.
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A decision on the third manufacturing site could come within the next 18 months, Li said, without specifying when production might begin. If the timeline follows that of BYD’s first European plant in Hungary—announced in late 2023 and set to start operations by the end of 2025—the new facility could begin production around 2028. However, no official schedule has been confirmed.
BYD’s European expansion includes the Hungarian plant, where models like the Dolphin and Atto 3 will be produced, and a planned factory in Turkey. Establishing local manufacturing sites would allow the automaker to avoid EU import duties, including the additional tariffs introduced in 2024.
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Despite trade barriers, Europe remains an attractive market for Chinese manufacturers, as they can command higher prices compared to the competitive Chinese market.
The company has also strengthened its European leadership team, appointing former Stellantis executive Maria Grazia Davino as Regional Managing Director for several key markets and hiring a sales director for Germany from competitor SAIC. However, BYD’s European sales have not met expectations, with figures fluctuating by brand.
See also: BYD to Begin Manufacturing Dolphin and Atto 3 EVs in Europe Amid Expansion Efforts
Nonetheless, Jato Dynamics data for January showed that BYD sold 44% more vehicles in Europe than SAIC, whose MG Motor brand leads Chinese automakers in the region.