Chinese automaker BYD said on Thursday that it is still on schedule to begin production at its first European passenger vehicle factory by the end of this year.
The statement comes after Reuters reported on Tuesday that the Shenzhen-based company was delaying the beginning of operations to 2026, citing two sources familiar with the matter.
BYD told media outlet Global Times that its “strategy in Europe is long-term” and that the project “remains on track to start production by the end of the year.”
“The planned capacity also remains unchanged,” the company said, adding that it has a “target annual peak output of 300,000 units.”
The automaker further mentioned that it is currently certifying 150 European suppliers to support local production.
In late June, BYD signed a supply agreement with Vienna-based Voestalpine, the first partner confirmed for the factory’s supply chain.
The company will supply “flat steel for car bodies and outer skin components” starting in the “autumn.”
BYD invested over $4 billion in the factory, located in Hungary, where it also established its European headquarters.
By establishing a local factory, it became the first Chinese automaker to bypass EU tariffs on Chinese-produced vehicles. The company currently faces a 17% tariff on all EVs it imports into the continent, and 10% for plug-in hybrid models.
The report on Tuesday also noted that BYD‘s plant in Turkey will begin production earlier than expected, as labor costs are lower in the Euroasian country. As of Thursday, the company did not comment on the Turkish site.
The company continues to expand its presence across the globe, as it aims for 50% of all sales to come from overseas markets by 2030.
According to its website, the company is currently present in over 20 European markets. BYD expanded to Romania, the Czech Republic, Slovakia, Croatia, Serbia and Estonia in the past few months.
According to a report by Jato Dynamics released on Wednesday, BYD‘s registrations in Europe reached 15,565 units in June and a total 70,500 vehicles in the first half of the year.
On Thursday, the automaker announced it has sold 90,000 new energy vehicles in Thailand after three years in the market. The milestone also came as the company marked the first anniversary of its local factory.
Last week, BYD sold 51,400 vehicles in its domestic market, recovering from the weak sales figures of the second week of July.
Year to date, the Shenzhen-based company has registered over 1.5 million vehicles in China.
