BYD postpones mass production at its Hungary factory, accelerating production instead at its Turkey facility, according to a report.

BYD, a leading Chinese electric vehicle (EV) manufacturer, is set to make significant strides in its production plans with the upcoming launch of its plant in Turkey.

In a notable development, BYD announced in July 2024 that it would invest $1 billion in an NEV production site in Turkey, with a planned annual capacity of 150,000 units. The plant, scheduled to start production at the end of 2026, is expected to surpass the production output of BYD's Hungarian plant in 2024.

In contrast, the Hungarian plant, initially planned to produce 150,000 units per year, will only produce a few tens of thousands in 2026. The production at the Hungarian plant is expected to increase in 2027, but it will still operate below its planned capacity.

BYD's Turkish plant will be a game-changer, producing over 150,000 vehicles per year by 2027. The production at the plant will significantly ramp up in 2028.

The models produced at the Turkish plant will include the all-electric Seal U SUV, the Sealion 5 (possibly an all-electric or plug-in hybrid version), and two plug-in hybrid models, the Seal U DM-i and the Seal 06 DM-i.

One of the key advantages of the Turkish plant is that many of the cars produced will be sold in Europe and exported to the EU without paying tariffs. This is a significant advantage as BYD faces a tariff rate of 17.0 percent on EV imports to the EU, in addition to the original 10 percent.

BYD signed a land pre-purchase agreement with the Szeged government on January 30, 2024, and will also build a research and development center in Turkey. The production at the Turkish plant will significantly exceed its announced production plans, marking a significant milestone for BYD's global expansion.

In a surprising turn of events, BYD has delayed mass production at its Hungarian electric vehicle plant until 2026. The Hungarian plant was initially planned to start production by September 2024, but the installation of production line machinery has been delayed. The EU ended an anti-subsidy investigation into battery electric vehicle imports from China last October, paving the way for increased production at the Hungarian plant in the future.

BYD had planned to produce several different models at the Hungarian plant, including the Atto 2, Atto 3, Dolphin, and potentially others. However, the Hungarian plant will operate below capacity for at least the first two years.

In a positive note, BYD is expected to begin mass production of electric vehicles at its R&D center in Turkey by the end of 2025, although some sources indicate there might be delays until 2026, with scaled initial capacity planned. BYD will carry 7,000 cars to Europe on the maiden voyage of its profile on Twitter, signaling the start of a new era in EV production for the company.

BYD postpones mass production at its Hungary factory, accelerating production instead at its Turkey facility, according to a report.