BYD is shifting focus to European growth to counter declining sales in China, with plans for three assembly plants and a battery factory in the region to meet EU regulations. As BYD begins mass production in Hungary, it aims to navigate a 27% tariff on Chinese EVs entering the EU. The company is exploring refurbishing existing sites for its second plant, considering Spain and France. Political scrutiny in Hungary over investment agreements poses challenges, as does ongoing pressure for local content compliance, which could affect future plans in Turkey.
BYD is also seeking to acquire a brownfield site from local automakers instead of pursuing joint ventures, emphasizing full local production for both passenger vehicles and its emerging commercial line, to mitigate tariff impacts. The strategic pivot comes amid a significant downturn in domestic sales, further highlighting the urgency for robust European operations.
