Szeged BYD Plant May Begin Production Earlier than Anticipated
BYD’s Factory in Szeged Could Start Production Earlier Than Planned
BYD’s factory in Szeged, Hungary, which is currently under construction, may begin production two to three months ahead of schedule. The first models could potentially be ready to roll off the production line as early as autumn 2025, as reported by Index.
China’s electric car giant announced in December 2023 that Szeged would be the location for its first European factory. Construction preparations began a year ago in February 2024, and work has been progressing steadily since then. While initial projections suggested the first cars might be produced by the end of the year, Automotive News Europe, cited by Index, now reports that production could commence as early as October.
The rush to start production earlier is driven by the fact that BYD currently faces a 30 percent tariff on cars imported from outside the European Union, in addition to transport costs. Vehicles assembled at the Szeged plant will be exempt from EU tariffs on electric vehicles manufactured in China.
In addition, BYD is exploring the establishment of a European supply chain for its upcoming factories in Hungary and Turkey. The company’s management recently met with 300 Italian suppliers in Turin on February 20-21. While BYD currently produces 70 percent of its components in-house in China, it will initially rely on external suppliers in Europe.
The construction of the 300-hectare e-car plant in Szeged began just a year ago and has since been progressing rapidly. The project, with an estimated value of up to €5 billion, is expected to create 8-10,000 jobs in the region. Hungary’s largest industrial investment is bringing economic growth and opportunities to the southern Hungarian city.
With the automotive industry evolving towards electric vehicles, BYD’s presence in Hungary marks a significant step towards sustainable transportation and economic development. The anticipation is high for the Szeged factory to start production and contribute to the growth of the electric vehicle market in Europe.
Source: Index, Featured image: Hungary Today
