Chinese electric vehicle (EV) manufacturer BYD plans to start producing its Dolphin and Atto 3 models in Europe next year.

The company will establish a production facility in Hungary, with expansion expected by the end of 2025.

Li Ke, head of BYD’s European division, said in an interview with a German business magazine that the decision to produce the Dolphin and Atto 3 was based on anticipated sales.

Initially, BYD considered manufacturing its Seagull model but shifted priorities due to market demand.

This initiative comes as BYD faces challenges in the European market, where sales growth for electric vehicles has been slowing this year. The company also plans to introduce more plug-in hybrid models to better meet the needs of European consumers.

BYD’s decision is influenced by import tariffs on Chinese-made EVs.

Additionally, the company is establishing a European supply chain, with plans to assemble battery packs in Hungary and Turkey while continuing to import battery cells from China.

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