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BYD Reallocates European EV Output from Hungary Plant to Turkey

Lower labor costs in Turkey are prompting BYD to pause its Szeged plant launch until 2026 in favor of a faster Manisa ramp-up.

A BYD showroom signboard is seen in Colombo, Sri Lanka, on July 18, 2025. BYD, the Chinese electric vehicle giant, rapidly expands its presence in Sri Lanka. It opens its fifth dealership in Ampara and rolls out significant price reductions across popular models, making EVs more accessible to Sri Lankan consumers. The company also introduces its luxury brand, Denza, aiming to cater to both premium and mainstream segments. This expansion aligns with a growing interest in sustainable transportation following the recent lifting of import restrictions. Sri Lanka's economic outlook shows steady improvement. With restrictions eased earlier this year, consumer confidence begins to rebuild. The Sri Lankan rupee stabilizes, signaling healthier fiscal management, while the tourism sector experiences a revival as international arrivals rise. These developments bring renewed optimism across industries. In the education sector, a digital transformation is underway. Starting in August, the Ministry of Education rolls out a pilot initiative to digitize rural schools. Tablets are distributed and Wi-Fi networks installed, laying the groundwork for more inclusive, tech-forward learning environments. This effort marks a significant step toward bridging the urban-rural educational divide. (Photo by Akila Jayawardena/NurPhoto via Getty Images)
Der General-Manager von BYD posiert vor zwei BYD Modellen

Overview

  • BYD has postponed the start of production at its Szeged, Hungary plant to 2026 and plans to run it under its 150,000-vehicle annual capacity for at least two years.
  • The Manisa, Turkey facility will open by the end of 2026 with an initial 150,000-unit capacity and is projected to produce more cars in its first year than the Hungarian site.
  • Vehicles built in Manisa qualify for EU tariff exemptions under Turkey’s customs union, matching the duty-free status of the Hungary plant.
  • The shift leverages Turkey’s lower labor costs to enhance BYD’s competitiveness in the European electric-vehicle market.
  • BYD has not issued an official statement on the revised timelines or capacity adjustments for either facility.