China’s BYD Faces Setbacks in European Investments: The Manisa Collapse and Challenges in Hungary

In June 2026, Chinese electric-vehicle manufacturer BYD announced the indefinite hold of its $1 billion factory project in Manisa, Turkiye. The project, signed in 2024, aimed to produce 150,000 vehicles annually and generate thousands of jobs. However, construction had not commenced, leading BYD to prioritize its facility in Szeged, Hungary. The decision to halt the Manisa project had political ramifications for Turkiye, which had granted BYD significant import-tax exemptions. Beijing responded by intensifying media and diplomatic efforts in Turkiye to mend relations and protect its image. The collapse of the Manisa investment dealt a blow to Turkiye’s ambition of becoming…