- Chinese automaker BYD is reportedly considering opening a third facility within Europe, as it looks to further drive sales across the region whilst also avoiding tariffs imposed on Chinese-made EVs by the European Union.
- The manufacturer is expected to make a decision by the end of 2026, on whether the third factory will go ahead.
- The new prospective facility would join both its Hungary factory, set to start producing BYD cars later this year, and a planned factory in Turkey.
BYD plans further European expansion
BYD’s Hungary factory, set to go online later this year, will initially produce two EVs, the Dolphin in the ATTO 3. However, it eventually plans to produce nearly all models sold in Europe at the plant, with the factory set to produce 12 specific models once running at full capacity. We can expect a similar strategy to be in place if this third factory is to come to fruition.
The exact location of this third possible facility is yet to be confirmed, but the manufacturer is likely to go for a country within the European Union – making it another factory where BYD can sell its EVs to EU customers without being hit with the 17% tariff being imposed on BYD. This should help keep the cost of BYD EVs competitive in the EU not just through a lack of tariffs, but also reduced shipping costs and logistical complexities.
BYD is already performing strongly across much of Europe. Back in January, the manufacturer outperformed Tesla in terms of monthly sales in the UK, while the arrival of the sub-£30k ATTO 2 to Europe this year is also poised to be a significant seller. BYD has a target of having 50% of its sales come from overseas by 2030, with facilities such as the one planned playing a key part in achieving this goal.
