TLDR
- BYD will start production at its Hungary plant by end of 2025, manufacturing the Dolphin Surf compact electric car first
- Chinese automaker plans to produce all EVs for Europe locally within 2-3 years to avoid EU tariffs on Chinese-made vehicles
- Plug-in hybrids expected to dominate BYD’s European sales within 1-2 years, with 3-4 new PHEV models launching in next six months
- BYD will launch luxury Yangwang brand in Europe by 2027 and start production in Turkey by 2026
- Company’s global sales reached 4.2 million cars in 2024, up tenfold from 2019, though recent months show declining sales in China
BYD announced it will begin production at its new Hungary facility by the end of 2025. Executive Vice President Stella Li made the announcement at the Munich car show on Monday.
The first vehicle rolling off the Hungarian production line will be the Dolphin Surf compact electric car. This timeline represents a potential acceleration from earlier reports suggesting mass production might be delayed until 2026.
Li emphasized the company’s commitment to the European market. “This shows we are in Europe to stay,” she said during the press event.
The Hungary plant is part of BYD’s broader strategy to manufacture all European EVs locally. The company aims to achieve this goal within two to three years.
“We are training ourselves to be more European in production,” Li told Reuters at the IAA Mobility car show. This approach will help BYD avoid EU tariffs imposed on Chinese-made electric vehicles.
The European Union implemented these tariffs last year. Officials believed Chinese automakers benefited from government subsidies, creating unfair competition.
Local Production Strategy
BYD’s European manufacturing plans extend beyond Hungary. The company will start production in Turkey by 2026.
These facilities will support BYD’s goal of local production for European sales. Li confirmed the timeline when asked about supplying European demand locally.
“Give us like two to three years,” she said regarding full local production capability.
The strategy represents a response to trade barriers. Local production allows BYD to sell vehicles in Europe without facing punitive tariffs.
Shift Toward Plug-in Hybrids
BYD originally focused solely on fully-electric vehicles in Europe. The company announced it would also sell plug-in hybrids late last year.
Plug-in hybrids have proven popular with European consumers. In Britain, BYD’s top-selling model is actually a plug-in hybrid rather than a pure electric vehicle.
Li expects this trend to continue growing. Within the next six months, BYD plans to launch three to four new plug-in hybrid models.
“In the next one or two years, our plug-in hybrids will be dominating sales” in Europe, Li predicted.
The company sees plug-in hybrids as a bridge technology. They offer electric driving capabilities while addressing consumer concerns about charging infrastructure.
BYD also plans to introduce its luxury Yangwang brand to Europe in 2027. This expansion shows the company’s confidence in the European market.
Global Sales Performance
BYD’s global sales reached 4.2 million cars in 2024. This represents a tenfold increase from 2019 levels.
However, the company has experienced several months of declining sales and production in China. Li characterized this as normal after a period of rapid growth.
“BYD is still the number one in China, we’re happy with the results,” she said. “Maybe in the past one or two years our share was too high as number one, so now we go back to living normal.”
Despite recent declines in China, BYD’s sales remain up by double digits this year. Li expects growth in 2025 to come primarily from international markets rather than domestic sales.
The company’s expansion into Europe represents a key part of this international growth strategy. Local production facilities will be crucial for competing effectively against established European automakers.
BYD Chairman Wang Chuanfu may face mandatory retirement in early 2027 under new Chinese government policy. Wang is currently 59 years old.
When asked about succession planning, Li remained secretive. “Let’s keep it a secret,” she said regarding potential replacements for Wang.
