BYD: Clear Denial - Europe Campaign Progresses Consistently as Planned
The construction of BYD's first European car plant in Szeged, Hungary, is progressing as planned, according to official sources. Despite recent speculation suggesting a delay in the production start, BYD and Hungarian authorities have firmly denied such claims, emphasizing their commitment to the original timeline.
The state-owned Chinese newspaper Global Times reported BYD's denial of the delay reports, which have caused uncertainty among investors. BYD (WKN: A0M4W9) insists that production will begin by the end of 2025, with no reduction in the planned capacity of up to 300,000 vehicles annually.
BYD is currently certifying 150 European suppliers to support local production at the new factory, signaling their commitment to the project. The company's relocation of its European headquarters to Budapest further solidifies this long-term strategy in Europe.
Reports based on unnamed sources have suggested a delay of mass production at the Szeged plant from late 2025 to 2026, with the factory operating below capacity for at least the first two years. However, BYD has publicly refuted these claims, maintaining the original timeline and capacity projections.
Construction on the factory is actively progressing and nearing completion, according to official sources and photos released by the Hungarian government. Austrian steel giant Voestalpine has been confirmed as a major partner for the supply chain, set to supply flat steel for body and exterior components from autumn.
The strategic importance of the new BYD Europe Factory lies in avoiding EU tariffs on vehicles produced in China. With pure electric vehicles subject to a 17% tariff and plug-in hybrids facing a 10% tariff, the rapid establishment of local production in Europe is crucial for BYD to challenge established manufacturers like Volkswagen and Tesla for market share.
In conclusion, based on the most recent and official information available as of late July 2025, there is no confirmed significant delay in the BYD Hungary factory. The project is on track with construction well underway and production planned to start by the end of 2025. However, some industry sources speculate a more gradual ramp-up or partial delay, though these remain unofficial and disputed. A quick entry into the European market is a key pillar of BYD's growth strategy, and the new BYD Europe Factory is a significant step towards achieving this goal.
[1] Reuters. (2025, July 1). BYD's Hungary factory to start production in 2026, not 2025 - sources. Retrieved from https://www.reuters.com/business/autos-cleantech/byds-hungary-factory-start-production-2026-not-2025-sources-2025-07-01/
[2] Hungarian Investment Promotion Agency (HIPA). (2025, June 30). BYD confirms production start in 2025. Retrieved from https://www.hipa.hu/en/news/byd-confirms-production-start-in-2025
[3] Global Times. (2025, July 5). BYD denies delay in Hungary factory construction, reaffirms commitment to Europe. Retrieved from https://www.globaltimes.cn/page/202507/1265536.shtml
[4] BYD. (2025, July 2). BYD refutes media reports of delay in Hungary factory construction. Retrieved from https://www.byd.com/en/news/byd-refutes-media-reports-of-delay-in-hungary-factory-construction/
Technology plays a crucial role in BYD's production plans, as the company is currently certifying 150 European suppliers to support local production at the new factory, signaling their commitment to the project. Furthermore, the advancements in technology will aid in avoiding EU tariffs on vehicles produced in China, as BYD seeks to challenge established manufacturers like Volkswagen and Tesla for market share.
