BYD Auto, China’s largest automaker, plans to delay the start-up of operations at its plant in Hungary until 2026, according to unconfirmed reports citing sources familiar with the matter. The plant was originally scheduled to start production in the fourth quarter of 2025.

The sources also suggested that once operations begin next year, the company will operate the € 4 billion facility, located in Szeged in the south of the country, at significantly below capacity for at least two years. The plant will have an initial production capacity of 150,000 vehicles per year, but only “a few tens of thousands of vehicles” are expected to be produced in 2026.

At the same time, BYD plans to bring forward production at its US$ 1 billion plant in Turkey, where labour costs are significantly lower, and to produce significantly more vehicles than it had previously planned. The facility, under construction in Turkey’s Manisa province, was originally scheduled to begin operations at the end of 2026 with an initial production capacity of 150,000 vehicles annually.

Production at the Manisa facility is expected to “far exceed” 150,000 vehicles in 2027, according to the sources, with BYD planning to greatly increase output again in 2028 from these levels.

The sharp currency fluctuations recently will also have had a significant influence on the company’s decision to prioritise its Turkish operations. The Euro has strengthened by 11% compared with the Chinese yuan (CNY) since the beginning of the year, while the Turkish lira has depreciated by 16% against the CNY.