BYD is preparing to begin large-scale vehicle production in Hungary before the end of the year and is weighing additional assembly sites in Spain, France and Italy, as the Chinese carmaker builds toward a European manufacturing footprint of three vehicle plants and one battery plant.
Alfredo Altavilla, a former Fiat Chrysler executive who now advises BYD's European operations, said the company had already held talks with car manufacturers and governments in the three countries about possible sites. BYD would prefer to acquire underused factories rather than build entirely new facilities, he indicated.
«Over the longer term, we will need three assembly plants and one battery plant,» Altavilla said. «Obviously, this is not something that will happen overnight. However, it is clear that, to achieve the volume targets we have in mind, while at the same time complying with European regulations, that is what we will need.»
The Hungarian plant in Szeged has been completed and trial production has started. It is designed to produce up to 200,000 vehicles a year, with large-scale output expected to begin in November or December. Altavilla said BYD wants to decide on the location of a second manufacturing site by the end of the year, after which it must choose whether to prioritise a third assembly plant or a local battery plant.
The expansion reflects a sharp shift in BYD's sales geography. The company has established itself as China's largest car manufacturer, but sales in its home market have fallen 32.7 per cent this year to 1.505 million vehicles. Overseas deliveries have risen strongly, and the brand expects to sell between 1.9 million and 2.0 million vehicles internationally by the end of 2026.
Europe is central to that push. BYD has previously announced plans for a plant in Manisa, Turkey, capable of building 150,000 vehicles a year, with production originally intended to start in late 2026. Work at that site has been put on indefinite hold, leaving Hungary as the near-term anchor of the European strategy.
Local assembly would help BYD meet European regulatory requirements while serving demand more directly, and the company's willingness to take over existing industrial capacity could reshape the continent's car industry. Legacy manufacturers already facing pressure from Chinese electric vehicles would confront a rival producing inside their home market, with the cost and tariff advantages that local manufacturing can bring.
The plan also points to a broader industrial ambition. A European battery plant would extend BYD's control over the supply chain for electric vehicles, from cells to finished cars, at a time when European policymakers are trying to build domestic capacity in both areas. For now, the immediate focus is Hungary, where production is due to start within months, and the search for a second site, which BYD aims to settle before the year is out.