BYD Eyes Germany for New EV Assembly Plant in Europe

BYD, the largest electric vehicle manufacturer in China, is reportedly considering Germany as a location for its third assembly plant in Europe. This news emerged as the region's largest economy and car market opposed EU tariffs on China-made electric vehicles last year. Several Chinese automobile manufacturers are considering setting up their assembly plants in Europe to make their entry with lower-cost models in the market as the demand for EVs in China is slowing down gradually.

In an interview with Automobilwoche, EVP Stella Li said that BYD was planning to set up a third facility to serve the European automobile market in the next two years, while the company already has two facilities in Hungary and Turkey. Some sources have also reported that BYD's choice for a third assembly plant is being discussed, given the country's high labor and energy costs, while the productivity and flexibility are comparatively low.

The third assembly plant of BYD can be set up in Western Europe because the brand aims to ensure wider recognition and acceptance among European customers. However, sources claimed that the company might not consider European countries that supported import tariffs on China-made EVs.

BYD's Hungary plant is likely to commence production for EVs in October, while the factory in Turkey will start in March 2026. When both get fully operational, these BYD EV plants will have a total production capacity of 500,000 cars a year. Some reports say China's largest electric car maker is developing hybrid powertrain technology as part of its European expansion. According to S&P Global Mobility, the European sales for BYD cars will reach 186,000 units from 83,000 units in 2024, and sales will likely reach 400,000 by 2029.