BYD has confirmed that its production plant in Hungary will not start until the end of 2026, a year later than announced. The decision aims to avoid the EU's new tariffs on Chinese electric cars. Additionally, the company has halted its project in Turkey, opening the door for Spain to position itself as a new strategic location for the Asian firm.
Industrial strategy and timeline adjustment on European soil 🏭
The Hungarian delay responds to the need to adapt the supply chain and certify local processes before 2027. BYD aims to produce within EU territory to bypass the 17% tariffs on Chinese imports. The Turkish halt, where it planned to manufacture 150,000 vehicles per year, leaves a logistical gap that Spain could fill with its supplier network and access to the European market.
Spain, the unexpected substitute in the factory dance 🇪🇸
While BYD decides whether to set up shop in Spain, local politicians are already rubbing their hands at the thought of jobs. But beware, the track record of halted projects in the automotive sector is almost as long as the list of tariffs they are trying to avoid. If they do eventually come, they should bring plenty of coffee for the long bureaucratic waits.