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Chinese electric car giant BYD is looking to delay mass production at its Hungarian facilities to 2026 as it gears up to launch a new factory in Türkiye, according to insiders who talked to Reuters.
BYD intends to prioritize its Turkish production line over Hungary, where BYD is planning to operate under-capacity for two years, due to the low labor costs that Türkiye offers, the report said.
The auto giant plans to circumvent the EU taxes on Chinese car manufacturers with the "Made in Türkiye" certificate, as vehicles produced in Türkiye are not subject to taxation when imported into the EU. Meanwhile, production at its Hungarian factory is considered EU-made and is also not subject to taxes.
The Chinese automotive giant announced its intention to invest $1 billion in Türkiye in July 2024. The project includes the construction of an electric vehicle facility in Manisa with an expected annual production capacity of 150,000 units.
The Manisa factory is set to become operational by the end of 2026 and outpace the Hungarian facilities in terms of mass production by New Year's. BYD plans for the Turkish factory to surpass an annual production capacity of 150,000 units by 2028, according to the report.
The facility is designed to serve both domestic and international markets, positioning Türkiye as a strategic manufacturing hub for BYD's European and regional operations.
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