Chinese electric vehicle maker BYD is delaying full-scale production at its €4 billion ($4.64 billion) plant in Szeged, Hungary to 2026, and expects to operate below planned capacity for at least two years, according to Reuters sources.

Initially projected to produce 150,000 units annually, the facility is now expected to manufacture only several tens of thousands in its first year. While output may increase in 2027, it will still fall short of targets. BYD plans to begin operations in October but has not disclosed a detailed production timeline.

Meanwhile, the company is accelerating its expansion in Turkey. Its $1 billion plant in Manisa — originally planned for late 2026 — is ahead of schedule and expected to exceed its 150,000-unit annual target by 2027, driven by lower labor costs. Production is set to expand further in 2028. In Brazil, BYD’s local vice president confirmed that its new plant, the company’s first outside Asia, will begin assembling EVs as early as this month, with capacity projected to reach 150,000 units annually and double within two years.

The shift toward lower-cost regions like Turkey underscores BYD’s cost-driven global strategy and marks a setback for the EU, which had hoped Chinese EV investments would bolster local manufacturing and employment.