BYD is considering building a potential third European factory in Germany in the wake of last year’s EU tariffs on Chinese-made electric vehicles (EV), according to a 17 March 2025 report by Reuters. According to a “source familiar with the matter”, the EV maker is considering Germany as part of a wider effort to build brand recognition as a local manufacturer in Western Europe, one of the world’s leading EV markets.
At the same time, internal questions are allegedly being raised over Germany’s high labour and energy costs, as well as its comparatively low productivity and flexibility. It should be noted that Germany has a relatively higher gross domestic product (GDP) per hour worked than most developed countries, sitting at US$90.9 in 2022 according to data from the Organisation for Economic Co-operation and Development. By contrast, France had an hourly GDP rate of US$86.7 and the UK had US$76.7.
Currently, BYD has two car plants currently in the works in Eastern Europe; one in Hungary, and the other in Turkey. A separate battery plant is also underway in Spain. Some countries are allegedly off the table entirely due to a directive from the Chinese state government not to invest in countries that supported the EU’s import tariffs. This would rule 10 EU member states, including Italy, France and Poland.
For the time being, the construction of a third plant is conditional on several factors, including BYD’s sales performance in Europe and how capacity is utilised at the plants in Hungary and Turkey when they begin production. The automaker aims to open its first production lines in Hungary sometime in H2 2025, with the Turkish plant slated to follow around March 2026.
