Chinese auto company BYD is set to engage with Italian auto parts makers to discuss potential supplies for its new plants in Hungary and Turkey, reported Reuters citing the EV maker's special adviser for Europe Alfredo Altavilla.

The company is constructing a site in Hungary, set to open in October, and another in Turkey, scheduled for production in March 2026.

The two facilities are aimed at serving the European market.

Altavilla was cited by the news agency as saying that the decision to open two plants within a short timeframe forms part of BYD's “cautious” manufacturing strategy, which includes a reliance on local suppliers.

Italian companies have been prioritised for these discussions due to their expertise and existing contracts with high-end brands, particularly German ones.

Altavilla said that Italian suppliers are currently facing a shortage of orders, partly because of reduced production from Stellantis, the primary automaker in Italy.

He added that BYD has not yet decided on whether to hold similar discussions with suppliers from other European countries.

The two plants in Hungary and Turkey are projected to produce a combined total of 500,000 cars annually at full capacity, which could generate "several billions of euros" in turnover for the suppliers, Altavilla said.

Recently, BYD introduced an advanced autonomous driving system named God’s Eye, which is expected to be integrated across all its car models.

BYD chairman and president Wang Chuanfu announced that the system would debut on 21 new energy vehicle (NEV) models, including the competitively priced Seagull, which retails at 69,800 yuan ($9,555).