Tesla's Competitor, BYD, Reveals European Factory Construction Progress: Satellite Images Suggest Factory's Structural Development
Get a load of this! BYD's mega new car factory in the heart of Hungary is rapidly shaping up, and it's aiming for nothing less than taking down Tesla in Europe.
After snatching the top spot in China, this electric vehicle giant is ready to cash in on Elon Musk's troubles in Europe. This grand factory is estimated to cost around $4.5 billion (approximately €4 billion) and is expected to churn out around 200,000 vehicles per year by the end of 2025.
But what's the catch? BYD ain't building this massive 300-hectare factory just anywhere. It's nestled on the outskirts of the vibrant city of Szeged, Hungary! Satellite images provided by Planet Labs show just how fast this beast is coming together. Can you believe construction started last year, and by the second half of 2025, the first electrified vehicle will roll off this very assembly line?
It seems BYD is determined to conquer Europe, and this investment is the next move in their quest for European dominance. After making waves in the fiercely competitive electric vehicle market in China, they're eyeing foreign territories and have even exported a record number of electric vehicles and hybrids in the first quarter of this very year!
So why Hungary?
Well, tariffs have played a significant role in their decision. You see, BYD is locked out of the U.S. market due to high tariffs. In Europe, they face a hefty 17 percent import tariff, which has got them thinking about building local factories, like the one in Hungary.
And it's not just Hungary. They plan to orchestrate a factory in Turkey in the near future as well. The company backed by Warren Buffett even hinted at plans for a third European factory! That's a serious threat to Tesla, which operates a Gigafactory in Germany and considers Europe its third-largest market.
Tesla sold an impressive 327,000 vehicles in Europe last year, but things haven't been going so well in 2025. Their sales have plummeted due to strong backlash against Elon Musk's meddling in European politics and his support for the far-right AfD party. In stark contrast, BYD's sales have nearly tripled!
Hungary has proved to be a warm and welcoming home for Chinese companies looking to establish a presence in Europe. CATL, the world's largest manufacturer of electric vehicle batteries, is also building a $7.6 billion (approximately €6.7 billion) factory in Hungary to tighten their grip on the European battery industry.
But all good things come with a price, and the presence of Chinese companies has stirred up tensions with the European Union, a union to which Hungary belongs. Indeed, the EU is currently investigating whether BYD's Hungarian factory has received unfair subsidies from the Chinese government.
So keep your eyes peeled, folks! The electric vehicle war in Europe is heating up, and BYD is ready to take no prisoners!
Enrichment Data:BYD's new passenger car factory in Szeged, Hungary, is under construction and scheduled to open in October 2025. The plant will have an initial annual production capacity of 150,000 vehicles, focusing on models like the Atto 3 SUV. Tesla’s European production is headquartered at its Gigafactory Berlin-Brandenburg in Germany, which currently produces over 500,000 vehicles annually. Despite BYD's plant being smaller in scale, it is accelerating through its PHEV-and-EV dual strategy and is one of several facilities they plan to build across Europe.
- The question arises, what could be the reason behind BYD's decision to build a new passenger car factory in Szeged, Hungary?
- Based on the information, it seems BYD's decision to build a factory in Hungary is largely influenced by tariffs, as they face a 17 percent import tariff in Europe.
- Industry insiders suggest that by establishing a local factory like the one in Szeged, BYD is hoping to avoid hefty import tariffs and gain a competitive edge over Tesla.
- Furthermore, the expected construction cost of $4.5 billion (approximately €4 billion) indicates that BYD is making a significant investment in the Hungarian automotive industry and technology.
- Once completed in October 2025, the factory in Szeged is expected to produce 150,000 vehicles annually, with a focus on models such as the Atto 3 SUV, aiming to make a substantial impact on the European market.
- As BYD is ramping up construction of their factory in Hungary, it remains to be seen if this will be the first of many European factories for the electric vehicle giant, signaling a significant shake-up in the European automotive industry and finance sector.
