China’s BYD will delay mass production at its €4 billion electric vehicle plant in Szeged, Hungary, until 2026 and initially run the facility below capacity, Reuters reported, citing sources familiar with the matter.
At the same time, the company is accelerating production plans at a new factory in Turkey, which is expected to exceed its previously announced output targets.
According to the report, the Hungarian plant will produce only tens of thousands of vehicles in 2026—well below its initial annual capacity of 150,000 units. While production at the site is expected to ramp up in 2027, it will still remain under capacity. The facility is part of BYD’s broader strategy to manufacture vehicles in Europe and avoid steep EU tariffs on Chinese-made electric cars, which currently face a combined duty of 27%.
In contrast, BYD’s $1 billion plant in Manisa, western Turkey, is now set to begin production earlier than scheduled and will outpace the Hungarian plant in output as early as next year, the report said.
The Turkish facility is expected to produce well over 150,000 vehicles in 2027, with further increases planned in 2028. Vehicles produced in Turkey benefit from tariff-free access to the EU market under a customs union agreement.
Reuters noted that the production shift reflects the challenges Chinese automakers face in balancing the desire to localize European manufacturing with the region’s higher labour and energy costs.
BYD, which aims to expand its global footprint amid a competitive price war in China, is also reworking its European operations after earlier missteps related to dealership networks and product strategies.
