BYD, the Chinese new energy vehicle (NEV) maker, is considering setting up its third European car assembly plant in Germany, according to a report by Reuters. This move comes as BYD aims to further establish its brand presence and acceptance in the European market.
Currently, BYD is in the process of building two NEV plants in Europe, one in Hungary and the other in Turkey. The Hungarian plant is scheduled to commence production in October, while the Turkish plant is expected to start production in March 2026. Once fully operational, these plants will have a combined capacity of producing 500,000 vehicles per year.
Stella Li, the executive vice president of BYD, mentioned in an interview with Automobilwoche that the company is exploring the possibility of constructing a third plant within the next two years to cater to the European market. While Germany is the preferred location for the new plant, internal discussions are ongoing due to factors such as high labor and energy costs, low productivity, and lack of flexibility in the country.
It is worth noting that BYD is adhering to a directive from the Chinese government not to invest in countries that support import tariffs. As a result, some EU member states, including Italy and France, are being discounted as potential locations for the new plant.
The decision on the location of the third plant will also be influenced by BYD’s sales performance in Europe and the capacity utilization of its Hungarian and Turkish plants. The company is closely monitoring the stance of individual European countries on China-related trade policies, as this will play a crucial role in determining the final location of the plant.
The European Commission’s decision to impose additional tariffs on imports of battery electric vehicles from China has further complicated the situation. Different countries within the EU have varying opinions on this matter, with some supporting the tariffs while others are against them. This divergence of opinions will impact BYD’s decision-making process regarding the establishment of its third plant in Europe.
Overall, BYD’s expansion plans in Europe reflect its commitment to strengthening its presence in the region and building a solid foundation for future growth. With the construction of new plants and strategic investments, BYD is positioning itself as a key player in the European NEV market.
