BYD Shifts Focus to Mid-Range Cars at Szeged Plant

Chinese carmaker BYD has announced details about its long-anticipated factory in Szeged, southern Hungary, writes Világgazdaság based on the German Capital. Departing from its home market strategy of prioritizing ultra-low-cost models, BYD will initially manufacture mid-range cars at the Hungarian facility, a move that aligns with European market demands.

Stella Li, BYD’s European head, revealed that the Dolphin and Atto 3 will be the first models produced in Szeged. The Dolphin, comparable to the Volkswagen ID.3 or Golf, and the Atto 3, a compact SUV, signal BYD’s intent to cater to Europe’s mid-range vehicle market. A third model, the Atto 2, blending characteristics of the other two, could join the lineup soon after.

The company also plans to introduce its Seagull small car to Europe, but only as the fourth model in its lineup.

Production at the Szeged plant is slated to begin in late 2025, with full capacity expected within two to three years.

Volkswagen may benefit from BYD’s staggered rollout, particularly in the low-cost segment. The German automaker aims to launch its ID.2 model by 2026, targeting a starting price of under EUR 25,000. This timeline could allow Volkswagen to establish a foothold in the affordable electric vehicle market ahead of BYD’s expansion into this segment.

Li emphasized that BYD’s long-term goal is to eliminate imports by producing its entire European lineup locally. The Szeged factory could eventually manufacture up to twelve different car models, reflecting BYD’s ambition to dominate the regional market.

Although BYD leads in China, its European presence is still modest. By the end of October, the company had sold only 2,157 cars in Germany despite being a sponsor of the summer football World Cup.

Recognizing the slower adoption of electric vehicles (EVs) in Europe, BYD is diversifying its offerings. Li confirmed plans to introduce more plug-in hybrids, which she described as a gateway for hesitant European consumers. Once buyers experience the benefits of partial electrification, they may transition more easily to fully electric models, she explained.

With this dual strategy of producing mid-range vehicles and offering plug-in hybrids, BYD is positioning itself to compete in Europe’s evolving automotive landscape. The Szeged factory represents a significant step in this effort, serving as a key hub for the company’s European ambitions.

Via Világgazdaság; Featured image via Hungary Today