BYD Puts Turkey Factory Project on Hold as European Expansion Takes Priority

Chinese electric vehicle giant BYD has announced that it is suspending plans for its proposed manufacturing facility in Turkey, choosing instead to focus on strengthening its production footprint across Europe.

The decision marks a significant shift in the company's investment priorities. Speaking to Reuters in London, BYD Vice President Stella Li confirmed that the planned factory project in Turkey has been placed on hold and that there is currently no fixed timeline for the start of production.

European Manufacturing Becomes the Main Focus

According to Li, BYD's immediate priority is the completion of its investments in Hungary. The company is also actively searching for a suitable location for a second European production facility as part of its long-term regional strategy.

The move reflects BYD's determination to establish a stronger local manufacturing presence in Europe, one of the world's fastest-growing electric vehicle markets.

Turkish Project Remains Uncertain

Last year, BYD signed an agreement with the Turkish government to build a manufacturing plant in Manisa with an estimated investment value of approximately $1 billion. The facility was expected to reach an annual production capacity of 150,000 vehicles and play a major role in Turkey's automotive industry.

However, despite the announcement, construction work and infrastructure development had not yet begun at the site. While the project has not officially been canceled, the latest statements indicate that it has been postponed indefinitely.

Expansion Plans Across Europe

A major factor behind BYD's strategy is the European Union's tariffs on Chinese-made electric vehicles. By producing vehicles within Europe, the company aims to strengthen its competitive position and reduce the impact of import duties.

BYD expects assembly operations at its first European factory in Szeged, Hungary, to begin during the fourth quarter of this year.

At the same time, the company is exploring opportunities to acquire existing manufacturing facilities rather than building entirely new plants. Reports suggest BYD has been in discussions regarding underutilized factories previously operated by established automakers such as Stellantis and Volkswagen.

Facilities located in Italy and France are reportedly among the most attractive options under consideration.

A Strategic Pause Rather Than a Cancellation

Industry observers view the decision as a strategic reallocation of resources rather than a complete withdrawal from Turkey. As competition in the global EV market intensifies, BYD appears focused on accelerating its European expansion through investments that can deliver faster operational results.

The future of the Turkish project will likely depend on the success of BYD's European manufacturing plans and the company's broader growth strategy in the region.