BYD’s Big Global Bet: 1.6 Million Cars, Three New Plants, and a New Automotive Order

BYD is rapidly transforming from a Chinese EV champion into a true global automaker. With an ambitious target of 1.6 million overseas car sales by 2026, the company is backing its vision with major investments in new production plants in Hungary, Brazil, and potentially Spain. This bold expansion strategy strengthens BYD’s presence in key markets, helps it navigate tariffs and trade barriers, and signals a reshaping of the global automotive order led by electrification and cost-competitive innovation.

Chinese automaker BYD is no longer just “China’s EV champion.” It’s openly gunning to become a global giant and its latest export ambitions make that crystal clear.

According to a recent note from Citi, BYD is targeting up to 1.6 million vehicle sales outside China in 2026, almost doubling its projected overseas volume of 900,000–1,000,000 units in 2025. For a company that, until a few years ago, sold almost everything at home, this is a massive pivot and it’s being backed by heavy investment in new factories in Hungary, Brazil, and potentially Spain. 

So what’s really going on here – and why does it matter for car buyers, competitors, and policymakers around the world?

From Chinese Champion to Global Contender

BYD’s rise has been one of the defining stories of the EV era. It overtook many legacy brands at home, briefly became the world’s top EV seller by volume, and built an integrated empire spanning batteries, chips, and complete vehicles.

But there’s a twist: growth in China is slowing, and competition in its home market is brutal. New models are launched every few months, price wars are regular, and margins are under pressure. In 2025, BYD even reported back-to-back year-on-year sales declines for certain months, underscoring that the easy growth phase at home is over.

The answer? Look outward. BYD now wants overseas markets to do the heavy lifting and it’s already partway there: around 20% of its 2025 sales so far are from outside China, double the share in 2024.

Why 1.6 Million Overseas Sales Is a Big Deal

A target of 1.6 million vehicles abroad in 2026 wouldn’t just be “good export performance” – it would put BYD in the same conversation as established global brands in markets where it was practically unknown a few years ago.

Citi expects BYD’s overseas growth to be broad-based, with Europe, North America and ASEAN each taking roughly a third of its international sales in 2025, before expanding further in 2026. That diversification matters. It means BYD isn’t just dumping cars into one region; it’s building a balanced global portfolio to manage risk.

For competitors, this is a clear signal: BYD isn’t treating exports as a side business. It’s designing cars, factories, and distribution networks around long-term overseas demand.

The Factory Strategy: Build Where You Sell

To support this export push, BYD is sticking to a simple but powerful formula: don’t just ship cars, build them closer to customers.

1. Hungary: The Flagship in Europe

In December 2023, BYD confirmed plans for a major passenger vehicle factory in Szeged, southern Hungary, with long-term capacity expected to reach around 300,000 vehicles per year by 2030, at an estimated cost of €4–5 billion. 

The plant is part of BYD’s strategy to:

• Serve the European market locally
• Reduce exposure to EU tariffs on Chinese-made EVs
• Signal long-term commitment to European jobs and supply chains

Although recent reports suggest mass production will ramp more slowly than originally planned – with full-scale output now expected from 2026 and initially below capacity, the direction is unchanged. BYD wants to be seen not just as an exporter into Europe, but as a European manufacturer.

2. Brazil: Gateway to Latin America

In Camaçari, Bahia, BYD has taken over a former Ford complex and is turning it into a major EV hub. The company is investing roughly BRL 5.5 billion (about US$1 billion), with an initial capacity of 150,000 vehicles per year. 

Production in Brazil gives BYD several advantages:

• Access to a large and growing Latin American car market
• Reduced import duties versus shipping fully built cars from China
• A powerful “local jobs and investment” story for policymakers

At the same time, BYD’s Brazilian project has attracted scrutiny: prosecutors have filed a lawsuit over alleged “slave-like” labor conditions involving contractors at the construction site, which BYD says it is addressing while cooperating with authorities. For global buyers and investors, this highlights that ESG and labor standards will be as important as price and technology in shaping BYD’s reputation.

3. Spain: The Next Piece of the European Puzzle

Beyond Hungary, BYD is now evaluating Spain as the frontrunner for a third European plant, according to multiple reports citing sources close to the discussions. 

Spain is attractive for several reasons:

• Strong existing auto manufacturing ecosystem
• Strategic location for exports across Europe and to North Africa
• A relatively friendly stance towards Chinese investment, including Spain’s decision to abstain in an EU vote on higher tariffs for Chinese EVs – something Beijing reportedly appreciated.

If the Spain plant is approved, it would further tighten BYD’s grip on the European market, allowing it to mix Hungarian, Spanish (and even Turkish) production with imports from China, optimizing around tariffs and logistics.

What This Means for the Global Auto Landscape

BYD’s export push is more than a single company’s growth story. It has ripple effects across the industry.

1. Fiercer price competition
   BYD’s scale, in-house battery production, and aggressive cost structure mean it can often price EVs below comparable models from Western and Japanese brands, while still offering competitive tech and range. As BYD ramps local assembly, those price advantages could get even sharper in markets like Europe and Latin America.
   
2. Policy and tariff chess
   Governments are already grappling with the implications of fast-rising Chinese EV imports. The EU and U.S. have introduced or raised tariffs on Chinese-built EVs, hoping to protect local industries and nudge Chinese brands to invest in local production. BYD’s new plants are, in many ways, a direct response to that strategy.
   
3. Pressure on legacy automakers
   Established brands now face a competitor that is:
   
   • Highly integrated (batteries, chips, cars)
   • Willing to invest billions in new markets
   • Comfortable operating on thinner margins in the short term
     
4. For some, that means rushing EV programs and cutting costs; for others, it may mean partnerships or joint ventures with Chinese firms rather than fighting them head-on.

For Consumers: More Choice, More Drama

From the customer’s perspective, BYD’s global expansion could be good news:

• More choice of EVs and plug-in hybrids, often at competitive prices
• Faster innovation cycles – BYD is known for rolling out new models and battery technologies quickly
• Pressure on local brands to up their game in both software and hardware

But it also raises questions:

• Will tariffs or political tensions make pricing unpredictable?
• How will safety, software updates, data privacy, and after-sales support be handled in different regions?
• And will concerns around labor practices or environmental impact influence brand perception over time?

The Bottom Line: BYD Is Betting Big and Betting Global

BYD’s plan to reach 1.6 million overseas vehicle sales by 2026, backed by new plants in Hungary, Brazil and a potential facility in Spain, is one of the boldest expansion plays the auto industry has seen in decades. 

If it works, BYD won’t just be a Chinese success story – it will be a truly global carmaker, reshaping pricing, technology, and industrial strategy from São Paulo to Seville to Szeged.

For now, one thing is clear: whether you’re a competitor, regulator, or car buyer, ignoring BYD is no longer an option.

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