Chinese electric vehicle manufacturer BYD announced plans to enter the European heavy-duty truck market, aiming to launch its first model next year and establish local production facilities. The announcement was made by Stella Li, BYD’s executive vice president and head of international business, during the IAA trade fair in Hanover on Monday.

Li emphasized the company’s long-term commitment to producing all vehicles sold in Europe within the region. This strategy is intended not only to meet local demand more efficiently but also to offer comprehensive service packages to fleet operators. Local manufacturing is also seen as a means to circumvent import tariffs on Chinese trucks, an issue that has drawn scrutiny within the European automotive sector.

European truck manufacturers, including Traton’s MAN brand, have recently urged the European Union to apply tariffs on Chinese electric trucks similar to those already imposed on passenger electric vehicles imported from China. BYD’s move to establish production facilities in Europe could mitigate the impact of such trade barriers.

In addition to expanding its commercial truck presence, BYD is also preparing to increase its passenger vehicle manufacturing footprint in the region. The company is planning to open a factory in Szeged, Hungary, next year, further signaling its ambition to strengthen its position in the European electric vehicle market.

The expansion aligns with broader industry trends as governments and companies across Europe strive to accelerate the adoption of clean energy transportation solutions and reduce emissions from commercial fleets. BYD’s local production plans highlight the growing importance of regional manufacturing capabilities amid evolving trade policies and competitive pressures in the electric vehicle sector.