BYD Delays Mass Production at Hungary EV Plant to 2026

According to Reuters, sources have revealed that Chinese electric vehicle manufacturer BYD will delay the mass production timeline for its new electric vehicle plant in Hungary until 2026. After the plant begins operations, it will run below the planned capacity for at least the first two years. The factory, located in Szeged, Hungary, represents an investment of 4 billion euros (approximately 4.64 billion USD) by BYD. Although mass production is scheduled to start in 2026, the expected output in the first year is only a few tens of thousands of units, significantly lower than the initial planned annual capacity of 150,000 units. The plant's maximum annual capacity is expected to reach 300,000 units. While production will increase in 2027, it will still fall short of the planned capacity. BYD has announced that the Szeged plant will commence operations in October this year, but has not disclosed a specific timeline for mass production. Meanwhile, sources indicate that BYD's new factory in Turkey, which has an investment of 1 billion USD and was originally set to be operational by the end of 2026 with an annual capacity of 150,000 units, will start production earlier and will significantly exceed the original production targets. This decision is primarily driven by the relatively low labor costs in Turkey. It has been reported that actual production at the Manisa plant in western Turkey will surpass that of the Hungarian factory in 2026, with production in 2027 far exceeding 150,000 units, and BYD plans to further increase the output at this plant in 2028. This strategic adjustment is undoubtedly a setback for the European Union, which previously hoped to attract more Chinese investments and create high-paying manufacturing jobs by imposing tariffs on Chinese electric vehicles. However, BYD's decision indicates a preference for establishing production in more cost-competitive regions. Additionally, earlier in July, Alexandre Baldy, Senior Vice President of BYD Brazil, revealed that the new factory in Brazil is expected to start assembling electric vehicles as early as this month, marking BYD's first factory outside Asia, with an initial annual capacity of 150,000 units, which is planned to be expanded to 300,000 units in about two years.