BYD looks at a French factory as Hungary starts up

BYD says France is on its shortlist for a new factory as its Hungarian plant nears mass production. Xpeng has started trial builds of a fourth model in Austria.

• c.150,000 Szeged initial capacity cars a year, reported
• 200,000 Long-term Szeged target cars a year
• 13,935 BYD France H1 2026 registrations, +136%
• 4 Xpeng models built in Graz G6, G9, P7+, G9L

BYD executive vice-president Stella Li has said the company is seriously considering a car factory in France, with the country now on its shortlist. The news came as BYD prepares to begin mass production at its first European car plant, in Szeged, Hungary, before the end of 2026.

At the same time, Xpeng has completed its first trial build of the G9L flagship SUV at Magna's plant in Graz, Austria. Together, the two moves show Chinese car makers shifting from shipping cars to Europe to building them there.

What Stella Li said about a BYD factory in France

Li first raised the idea in an interview with French broadcaster BFM Business, as reported by Reuters, and then repeated it at the Paris Motor Show, which opened on 13 October. She said BYD was looking very closely at setting up a plant in France and that the country was on its shortlist. She went further, saying she wanted French buyers to see BYD as a French company, and that the group would try to open a second and a third factory in Europe.

BYD has not named a site, a budget, a production capacity or a timetable for a French plant, so for now this is an ambition rather than a plan. It does fit the company's strong momentum in France, though. BYD registered 13,935 passenger cars there in the first half of 2026, up 136% year on year, and sells through about 115 dealerships run by groups such as Bymycar, Emil Frey and Bodemer.

Szeged: BYD's first European car plant, and why it is late

The Hungarian factory has been a long time coming. BYD announced it in late 2023 and promised to open it within three years. The target then moved to the end of 2025 and later to the first half of 2026. Trial production of passenger cars began around the end of January 2026, according to Szeged's mayor László Botka, as reported by Electrive. In June, Austrian outlet Industriemagazin reported that series assembly had slipped again, to the fourth quarter of 2026. BYD now says mass production should start this quarter.

The site covers about 300 hectares. Buying land from many private owners took time, and some of the sales ended up in legal disputes. Reports put the initial capacity at around 150,000 cars a year, with a long-term target of 200,000. The plant had around 960 workers at the start of the year, a number set to grow with output. The first model will be the BYD Dolphin Surf, the small electric hatchback sold in China as the Seagull.

BYD's second European project, in Manisa, Turkey, was planned as a roughly $1 billion investment, but it was reported to be on hold in June with no new timetable. Cars built in either country avoid the EU's extra duties on China-built electric cars: Hungary is an EU member, and Turkey has a customs union with the bloc.

Xpeng G9L becomes the fourth Xpeng built in Austria

Xpeng says its G9L completed its first production trial at Magna's Graz plant on 7 October, a year after the two companies started building cars there. It follows the Xpeng G6, the G9 and the P7+. The first pre-production car was driven 1,324 km from Graz to Paris ahead of the G9L's public debut at the motor show, where orders opened.

Xpeng says the G9L is planned for 64 markets and was validated for both left- and right-hand drive, which is relevant to the UK. Air suspension, adaptive damping and rear-wheel steering of up to 15 degrees come as standard. Xpeng has not confirmed UK pricing or a UK launch date for the G9L. You can see the current range on our Xpeng brand page.

Why European production matters: tariffs and trade deals

Since 2024, the EU has charged extra duties on electric cars imported from China, with the rate depending on the manufacturer. Building locally avoids those duties. EU officials are also discussing local-content rules, which would favour cars with European-made parts. Changan, Chery and GAC are widening their European production plans too, while Volkswagen and Stellantis are working with Chinese partners on new EVs.

Hybrids were outside the 2024 duties, and that gap helped push plug-in hybrid sales. On 9 October, the EU and China announced an arrangement that is expected to keep Chinese hybrid exports to the EU well below earlier forecasts; we covered it in EU and China agree to slow the flow of Chinese hybrids. BYD welcomed the outcome, calling it a more stable and predictable framework for trade. According to Dataforce, Chinese brands took a record 11.7% of the European market in August, up from about 5.5% a year earlier.

What it means for UK buyers

Britain has no extra tariff on Chinese-built cars, so a factory in Hungary or France does not change UK prices directly. UK models will probably keep coming from China for now. BYD is already growing fast here, as our report on BYD's biggest UK month shows, and Chinese brands as a whole took 23% of the UK market in September.

European production could still matter over time. Factories in Europe mean shorter supply chains, faster delivery of parts and less exposure to shipping disruption. If they ever build right-hand-drive cars, they could also give fleet buyers a 'made in Europe' option. The Dolphin Surf already starts at £18,675 in the UK, which puts it among the cheapest Chinese electric cars. Bigger alternatives include the BYD Dolphin and BYD Atto 2. You can browse all BYD models or compare it with rivals such as the MG4 EV Urban and Leapmotor T03.

What happens next

The key milestone is mass production at Szeged before the year ends. After that, watch for BYD to name a French site, for any revised timetable for Turkey, and for Xpeng to start full G9L production in Graz. We will report any UK pricing or right-hand-drive confirmation as soon as it is announced.

Chinese car production in Europe at a glance

FAQ

Where is BYD's European factory?

BYD's first European car plant is in Szeged, southern Hungary. Trial production began in early 2026, and mass production is due before the end of 2026.

Will BYD build cars in France?

Stella Li has said France is on BYD's shortlist for another European plant. No site, budget or timetable has been announced.

Which car will BYD build in Hungary?

The first model is the Dolphin Surf, a small electric hatchback known in China as the Seagull.

Will Europe-built BYDs be cheaper in the UK?

Not directly. The UK has no extra tariff on China-built cars, so where a car is built makes little difference to its UK price.

Sources

• Global Times — Chinese automakers accelerate European production
• Euronews — Chinese carmaker BYD plans to open factory in France
• Xpeng newsroom — G9L completes first production trial in Europe
• Electrive — BYD begins passenger car trial production in Hungary
• Foundry Planet — BYD delays start of production in Hungary once again