BYD may have its next power play: Another EV plant in Europe, this time in Germany

After dominating in China, BYD is making an aggressive push into Europe. With another EV plant reportedly coming soon, this time in Germany, BYD is taking direct aim at Volkswagen, BMW, and other domestic OEMs.

BYD wants a third EV plant in Europe, likely in Germany

BYD is already quickly expanding its European footprint with two manufacturing plants under construction. One is in Hungary, and the other is in Turkey.

According to a new report, a third could be coming soon. BYD’s executive vice president, Stella Li, recently told German newspaper Automobilwoche that the Chinese EV maker is eyeing another plant, and this time, it could be in Germany, the heart of Europe’s auto industry.

Although Li didn’t offer any other details, a source familiar with the matter told Reuters that Germany is likely BYD’s best option.

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Germany is home to Volkswagen, BMW, Mercedes-Benz, Porsche, and several others, which could lead to a major market shakeup.

BYD has been gaining momentum, with overseas sales surging in the first two months of 2025. In January, the company sold a record 66,336 NEVs overseas. Last month, BYD topped that with just over 67,000 vehicles shipped to overseas markets.

Chinese brands continued gaining traction despite new vehicle registrations falling 2% in Europe in January. With over 37,100 vehicles registered, Chinese brands accounted for 3.7% of the market, up from 2.4% in January 2023.

BYD wants to grow the brand in Europe and connect with local buyers. Although Germany would likely be the best place to do so, high energy costs could be a challenge.

Last Summer, BYD bought out its German distributor, Heden Electric Mobility, giving it more control over pricing and out.put

With the EU imposing new tariffs on EV imports from China, BYD could offset some of the costs through local production. Meanwhile, China has also warned domestic companies not to invest in countries applying additional tariffs.

BYD’s plant in Hungary is scheduled to open in October. The second in Turkey will come online in 2026, and both plants are expected to have a combined annual production capacity of 500,000.

Although BYD is best known for its low-cost electric cars, like the Dolphin and Atto 3, the company is expanding with luxury EVs, pickups, smart SUVs, and supercars now hitting the market.

BYD is aggressively ramping up in the region. According to S&P Global Mobility, BYD’s sales are expected to double in 2025 to 186,000. By 2029, the company is expected to sell around 400,000 vehicles with a full lineup.

No final decision has been made yet, but Li said the third plant could come within the next two years. After overtaking Volkswagen as China’s largest automaker, BYD could set up shop on its home turf. Check back soon for more. We’ll keep you updated with the latest.