BYD Deputy CEO Stella Li has provided an update on the Chinese EV manufacturer's production plans in Europe. Surprisingly, she announced that the construction of a passenger car assembly plant in the Turkish city of Manisa is on hold. At the same time, BYD is considering taking over an existing plant in Southern Europe from another manufacturer.Image: Peter SchwierzIt is widely recognised that localisation of European production continues to be a priority for BYD. Since 2017, the Chinese automotive group has been manufacturing battery-electric buses for the European market in Komárom, Hungary. Additionally, the company operates a battery assembly plant in Fót and another in Páty.Originally, production of the battery-electric compact car Dolphin Surf was scheduled to begin at the new passenger vehicle plant in Szeged, Hungary, by the end of 2025. However, despite starting test production in February 2026, BYD is still not fully prepared, according to news agency Reuters. Instead, the company will only begin producing electric vehicles at the site in the fourth quarter of 2026, with BYD Deputy CEO Stella Li reportedly stating that BYD is still installing equipment at the Hungarian plant.Li also commented on BYD’s broader production plans in Europe: “Hungary is the number one priority right now,” she told Reuters during a conversation at BYD’s UK headquarters in London. “The ​second priority will be to focus on finding a second (production) ⁠facility in Europe.” This statement carries significant weight, particularly as Stella Li simultaneously revealed that the company has temporarily halted work on a plant in Turkey.Until recently, it was widely assumed that BYD would build its second passenger vehicle plant for the European market in Turkey. As early as summer 2024, BYD had announced plans for an electric vehicle factory in Turkey and intended to invest around one billion US dollars. The production facility in Manisa, north of the port city of Izmir, was initially set to open by the end of 2026.However, during Stella Li’s interview with Reuters, it emerged that construction of the factory had not yet begun. The project is currently on hold, according to the BYD executive. She added that the Chinese carmaker has no timeline for starting production in Turkey. While this does not mean the project is permanently scrapped, it is no longer a priority.Instead, BYD is now focusing on finding a new production site in Southern Europe – and within the EU. Interestingly, BYD does not necessarily want to build a new factory: “We would prefer to take over an existing plant,” Stella Li said at a press event in Berlin. This could, for example, be located in Spain. According to an earlier report, BYD has long favoured Spain for a new car factory.While BYD has not provided a detailed explanation for putting the Turkey project on hold and seeking a site in Southern Europe, the decision is unlikely to be about avoiding the EU’s additional tariffs on Chinese-made electric vehicles. Since Turkey has a customs union with the EU, no such tariffs apply. Instead, the issue for BYD lies in the European Union’s proposed ‘Made in EU‘ rules, which require a high level of local value addition for vehicles procured or subsidised by public authorities. The German government has already indicated that it plans to adjust its current electric vehicle subsidies in line with these ‘Made in EU’ rules if they come into effect.reuters.com (Turkey), reuters.com (Southern Europe)