BYD is considering opening its third production plant in Europe

The Chinese manufacturer BYD is evaluating the possibility of expanding its presence in Europe with a new electric vehicle production plant. The company would be studying this option motivated by the application of special tariffs in the European Union on the import of this type of vehicle from China.

Additionally, everything seems to indicate that BYD is also considering setting up a battery production plant on the continent. Although this decision will be very carefully weighed and will not be taken hastily.

From the management of BYD they assure that the choice of location for the third electric vehicle production plant we are talking about could be finalised within the next year and a half. That is, by summer or autumn 2026. It is not clear, however, when it would begin operations if the project is ultimately given the green light.

BYD wants to establish a strong foothold in Europe

The Chinese manufacturer announced at the end of 2023 the construction of its first production plant in Europe. This plant, located in Hungary, will begin operating at the end of this same year. The company is also building a second production plant in Turkey, near the city of Manisa. This facility, with an initial investment of one billion dollars, will have an annual production capacity of 150,000 vehicles and is expected to begin operating at the end of 2026. Thus, and if similar timelines are met, it seems logical to assume that the first vehicles could come off the assembly line of BYD’s mentioned third electric vehicle production plant around 2028.

Regarding the possible opening of a new battery production plant in Europe, the company has chosen to be very cautious on this matter. For now, the only thing known is that BYD is considering producing batteries in Europe, but there are no details whatsoever about the possible location of this new plant, nor about the possible date of its opening.

In any case, with the first vehicle production plant in Hungary about to begin operations, from which two of the brand’s most popular models will come, the Dolphin and the Atto 3, it would not be surprising if that possible battery production plant were located nearby in order to supply batteries directly.

The effects of applying special tariffs in Europe

As we have already mentioned, BYD’s strategy of expanding its presence in Europe has a clear objective: to avoid the special tariffs recently imposed by the European Union on electric vehicles imported from China. However, we must not forget that for most Chinese manufacturers, selling their vehicles in the EU remains a good business, since their selling price in the European market is much higher than in China, where the brutal price war among brands has drastically reduced profit margins.