BYD plans to establish three vehicle assembly plants and one battery manufacturing facility in Europe. Alfredo Altavilla, a company advisor, confirmed the strategy to expand local production capacity to better serve the European market and reduce reliance on imports from China.

The first plant in Szeged, Hungary, has entered trial production. It is expected to reach full-scale operations by November or December 2026, with an annual capacity of up to 200,000 vehicles. The company is currently evaluating locations for a second factory, with a decision expected by the end of 2026.

Negotiations for the second site are underway with authorities and automotive firms in France, Italy, and Spain. BYD is considering both greenfield projects and the acquisition of existing, underutilized facilities to accelerate the launch. A third assembly plant or a battery factory will follow.

The company previously announced a 150,000-vehicle capacity plant in Manisa, Turkey, but construction is currently delayed indefinitely. These moves coincide with a 32.7% decline in BYD's domestic sales to 1.505 million units in 2026, while international sales are projected to reach 1.9 to 2 million vehicles.