BYD Shifts Production Priority to Turkey Over Hungary for Cost Efficiency
Chinese electric vehicle manufacturer BYD has reportedly decided to decelerate mass production at its €4 billion plant in Szeged, Hungary, scheduled for 2026. Instead, the company plans to shift significant production volume to a new facility in Manisa, Turkey, driven by lower labor costs. Sources indicate that the Hungarian factory will produce only tens of thousands of vehicles in its first year, remaining well below its planned annual capacity of 150,000 to 300,000 units through 2027. Conversely, the $1 billion Turkish plant is set to begin operations later this year, with production expected to far exceed its 150,000-unit annual capacity by next year. This strategic adjustment allows BYD to mitigate high import duties, including a 17% anti-subsidy tariff and a standard 10% import duty applied to China-made EVs in Europe. Vehicles manufactured locally in both Hungary and Turkey will be exempt from these European Union tariffs, enhancing competitiveness in the regional market.
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BYD Shifts Production Priority to Turkey Over Hungary for Cost Efficiency
Chinese electric vehicle manufacturer BYD has reportedly decided to decelerate mass production at its €4 billion plant in Szeged, Hungary, scheduled for 2026. Instead, the company plans to shift significant production volume to a new facility in Manisa, Turkey, driven by lower labor costs. Sources indicate that the Hungarian factory will produce only tens of thousands of vehicles in its first year, remaining well below its planned annual capacity of 150,000 to 300,000 units through 2027. Conversely, the $1 billion Turkish plant is set to begin operations later this year, with production expected to far exceed its 150,000-unit annual capacity by next year. This strategic adjustment allows BYD to mitigate high import duties, including a 17% anti-subsidy tariff and a standard 10% import duty applied to China-made EVs in Europe. Vehicles manufactured locally in both Hungary and Turkey will be exempt from these European Union tariffs, enhancing competitiveness in the regional market.
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