China’s BYD considers opening factory in Germany after Türkiye

Chinese electric vehicle (EV) manufacturer BYD is considering establishing its third assembly plant in Europe, this time in Germany. With a decline in domestic demand, the company is focusing on the European market and aims to avoid tariffs imposed by the European Union (EU) on Chinese EVs. Following its investments in Hungary and Türkiye, BYD’s move to Germany would strengthen its production strategy in Europe.

According to a source close to the matter, the company is seriously considering the plan to build the factory in Germany, with the information being shared with Reuters.

Avoiding tariffs, boosting sales across Europe

After a drop in domestic demand in China, Chinese automakers, including BYD, are aiming to increase sales of their low-cost vehicles in Europe.

To achieve this, they are evaluating the potential for establishing local production and assembly plants in the region. Additionally, the move is seen as a strategy to circumvent the EU’s customs tariffs on Chinese-made electric vehicles that were introduced last year.

BYD is already in the process of setting up factories in Hungary and Türkiye, marking its strong push into the European market.

BYD’s investment plans into Türkiye

BYD has officially announced its investment plans in Türkiye. In an agreement signed between BYD and Türkiye’s Ministry of Industry and Technology at the Dolmabahce Working Office of the Presidency, it was decided that the company would establish a production facility in Manisa.

The project, which will require an investment of approximately $1 billion, will feature an electric and plug-in hybrid car factory with an annual production capacity of 150,000 vehicles, along with a research and development (R&D) center.

With this project, BYD aims to provide employment for 5,000 people and position Türkiye not only as a production hub but also as a center for innovation and technology. The facility is expected to be completed within 12 months, sometime in 2025 or 2026.

BYD’s strategic expansion into Europe, particularly with plans for a factory in Germany, signifies a significant push into the region as the company seeks to strengthen its presence and circumvent trade barriers. With ongoing investments in Türkiye and Hungary, BYD is set to play a key role in the European electric vehicle market.