BYD Expands EV Production in Europe to Dodge Tariffs, Cut Costs

BYD's European expansion is a strategic move to dodge potential EU tariffs. Despite recent sales dip, the company is committed to growing its global EV presence.

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2025 October 21 . 12:00 AM

1 min read

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BYD Expands EV Production in Europe to Dodge Tariffs, Cut Costs

BYD, the world's fourth-largest automaker, is expanding its electric vehicle (EV) production in Europe. By the end of 2025, the company plans to establish new production sites in Hungary and Turkey, with Spain favored for a third location. Germany is not under consideration due to high labor and energy costs. This move aims to dodge potential EU tariffs and reduce production costs.

BYD's growth is fueled by exports, overcoming stiff competition on the domestic market. In the first half of 2025, the company sold over 2 million vehicles, a 31 percent increase from the previous year. However, BYD's stock has seen a downward trend, falling 1.1 percent to 11.57 euros in Frankfurt at the start of the week.

September 2025 marked the first month in 18 months that BYD sold fewer cars compared to the same month last year. Despite this, the company remains committed to its European expansion, with a final decision on the third plant's location in Spain expected by the end of the year.

BYD's European expansion, with new production sites in Hungary and Turkey, and a potential third plant in Spain, is a strategic move to avoid EU tariffs and reduce production costs. Despite a recent dip in sales and stock prices, the company's long-term growth strategy remains focused on increasing its global presence in the electric vehicle market.