BYD vows to build all EVs for Europe in Europe by 2028 — what that means for prices, tariffs, and the global EV race

The headline move

On September 8, 2025, at the IAA Mobility show in Munich, Chinese EV giant BYD said it plans to produce all cars sold in Europe within Europe by 2028. Executive vice president Stella Li detailed that BYD’s new factory in Hungary is slated to begin output this year, with a second plant in Turkey targeted for 2026 — a one-two punch aimed squarely at dodging EU tariffs on China-built EVs. BYD also expects plug‑in hybrids (PHEVs) to dominate its European sales in the near term and plans to launch 3–4 new PHEV models within six months; its luxury Yangwang brand is penciled in for a 2027 European debut. BYD sold about 4.2 million vehicles in 2024, underscoring how quickly it’s scaled globally.

Why this matters (even if you’ve never stepped into a BYD)

Europe has slapped additional tariffs of up to roughly 38% on Chinese-made EVs, on top of the standard 10% duty, arguing that state subsidies distort competition. BYD itself faces a provisional 17.4% anti‑subsidy rate. If you’re a carmaker, that’s like driving with the parking brake half on — unless you build locally, which is exactly BYD’s plan. Localized production can cushion prices, stabilize supply, and shorten delivery times for European buyers. For rivals, it raises the competitive bar: Chinese brands aren’t just exporting anymore; they’re pitching tents in the neighborhood.

The bigger picture: tariffs, competition, and a shifting map

BYD’s European build‑out lands amid an intensifying Europe–China EV trade standoff and growing pressure on Europe’s legacy carmakers. At the same Munich show, European brands were grappling with Chinese competition, volatile policy, and the still‑looming 2035 combustion‑engine sales ban debate. Industry leaders warned that rules and geopolitics are colliding with the gritty reality of ramping electric fleets, even as Chinese market share inches higher across the continent. Translation: the EV arms race has moved from shipyards to factory floorplans.

Okay, but what changes for everyday drivers?

• Prices and choice: Local production can shave off tariff costs and shipping, potentially easing sticker prices or enabling better trims for the same money. Even if you never buy a BYD, more competition usually nudges deals across the lot.
• Technology mix: BYD leaning into PHEVs fits current buyer behavior in many EU markets where charging access or apartment living complicates going fully electric. Expect more “electric most days, gas on holidays” powertrains on offer.
• Jobs and supply chains: Two new plants (Hungary and Turkey) mean more suppliers, logistics hubs, and technical roles in Europe. That’s good news for regional clusters hungry for EV-era investment.

How this links to other recent headlines

In recent months, EU authorities escalated tariffs on Chinese EVs while Chinese countermeasures targeted various European sectors — a tit‑for‑tat that shows how cars are now chess pieces in a larger trade game. European automakers, meanwhile, have urged policymakers to re‑evaluate the 2035 rules and speed real‑world charging build‑outs to make mass electrification less painful. BYD’s move to assemble in Europe slots into that backdrop: if tariffs raise the fence, build a gate.

A quick, light take

If BYD follows through, by 2028 your “made in Europe” hatchback could have a Shenzhen‑style brain with a Budapest or Manisa accent. It’s globalization’s version of picking up a local dialect: same software smarts, far fewer passport stamps for the parts.

What to watch next

• Plant ramp‑ups: Keep an eye on whether the Hungarian site truly begins output by end‑2025 and how quickly Turkey scales in 2026. If both hit stride, the price pressure on rivals tightens.
• Policy detours: EU‑China negotiations over EV tariffs could still reshape the playing field. Any compromise (like minimum prices) would affect how aggressively Chinese brands expand their local manufacturing.
• Consumer pivot: A PHEV wave now doesn’t preclude a BEV tide later. If charging gets cheaper and more ubiquitous, Europe could swing back to pure electric quickly — and local factories can switch model mixes faster than oceangoing car carriers can turn around.

The bottom line

BYD’s pledge to build European cars in Europe by 2028 is a pragmatic answer to tariffs and a signal that the next phase of the EV contest will be fought through local factories, faster launches, and model flexibility. For drivers, that could mean better value and more choice sooner. For policymakers and rivals, it’s a reminder that in the EV era, strategy isn’t just about batteries and software — it’s also about postal codes.