Weekly intelligence for Supply-Chain, Procurement & CEO desks
Leadership Nugget
BYD plans to build all EVs for Europe locally by 2028, with Hungary ramping in by end-2025 and Turkey from 2026. Localization tends to attract adjacent suppliers—electronics, interiors, packaging, logistics often cluster nearby. (Reuters, 2025a; 2025b)
EXEC SNAPSHOT
Q: What’s new this week?
A: At IAA Munich, BYD confirmed its “build-in-Europe-for-Europe” strategy, with Hungary and Turkey as main hubs. (Reuters, 2025a; 2025b)
Q: Why does that matter beyond cars?
A: New assembly hubs typically draw in suppliers across categories—think metals, packaging, electronics, MRO, logistics.
Q: What’s shaping landed cost?
A: EU duties on China-built BEVs include a 17% tariff for BYD; the EU’s Foreign Subsidies Regulation is still evaluating the Hungary project. (European Commission, 2024; Financial Times, 2025)
Q: Any shifts in product mix?
A: Some European OEMs are including plug-in hybrids alongside BEVs during transition to pace cost and infrastructure realities. (Reuters, 2025c; Financial Times, 2025)
DEEP DIVE — BYD’s Europe Build-Out
What’s new and where
Public statements at IAA Munich point to European production for European demand by 2028, with Hungary pencilled in for first output and Turkey as a second hub (Reuters, 2025a; 2025b). Early supplier activity usually gathers around the plant regions and nearby industrial corridors.
Trade and customs angle (EU–Turkey)
EU–Turkey movements use the A.TR movement certificate to confirm goods are in free circulation (it is not a proof of origin). Since July 2024, e-A.TR is accepted by EU member states. This documentation can change the landed-cost comparison versus Asia-to-EU routings (Access2Markets/TAXUD, 2024–2025).
Policy backdrop
The EU has definitive countervailing duties on battery-electric cars made in China; BYD Group’s rate is 17.0% (European Commission, 2024). In parallel, the EU Foreign Subsidies Regulation (FSR) is reviewing the Hungary project, which keeps policy risk on the radar (Financial Times/Reuters, 2025).
Timing markers to watch
Steel supply named: BYD and industry trade press list voestalpine as a steel supplier for the Szeged plant from autumn 2025 (BYD newsroom; Eurometal, 2025).
Battery cluster nearby: CATL Debrecen now guides late-2025/early-2026 start, relevant for e-powertrain logistics (CnEVPost/Reuters, 2025).
Ramp realism: Reporting indicates mass production in Hungary may slip into 2026 with a gradual ramp (Reuters, 2025d).
Who feels it first
Automotive programs move earliest, but electronics/EMS, formed metals, plastics, logistics, packaging and other industrial categories often see second-order effects as clusters mature (Reuters, 2025a; 2025b).
TRADE ROUTE ALERT — Q4 Shipping & Connectivity
Security monitor: UN extended Red Sea route monitoring through January 2026. (United Nations, 2025)
Digital pinch-point: Recent undersea cable cuts in the Red Sea caused latency and cloud disruption—revealing unseen supply chain vulnerabilities. (Reuters, 2025e; AP, 2025)
Innovation of the Week
Open-source eCMR gains traction. An interoperable, legally compliant eCMR stack—launched by Open Logistics Foundation at transport logistic 2025—promises streamlined freight documentation and lower lock-in. (Open Logistics Foundation, 2025)
On the horizon (air freight): IATA’s ONE Record goes live as the default standard from 1 Jan 2026, pushing forward air data efficiency. (IATA, 2025)
Commodity Corner — Raw Inputs
EU hot-rolled coil (Italy, ex-works): ~€548/t (Eurometal, 2025)
Nickel (LME cash): ~$15,100/t (LME/Westmetall, 2025)
Lithium carbonate (China, battery-grade): ~CNY 74,600/t (TradingEconomics, 2025)
Brent crude: mid-$60s/bbl (Reuters, 2025f)
Dutch TTF gas: ~€33/MWh (TradingEconomics, 2025)
KPI DASHBOARD
Indicator (9–10 Sep) | Latest | Trend | Why it matters |
|---|---|---|---|
Eurozone Manufacturing PMI (Aug) | 50.7 | ▲ | First expansion since 2022 (Reuters, 2025g) |
US ISM Manufacturing PMI (Aug) | 48.7 | → | Still contracting; cross-market gauge (ISM, 2025) |
Drewry WCI (4 Sep) | $2,104/FEU | → | Reference for ocean-rate clauses (Drewry, 2025) |
EUR/USD | ~1.17 | ▲ | Slight euro gain eases USD exposure (LSEG/Reuters, 2025) |
Leadership Questions
Have we modeled dual-lane pricing (China DDP vs EU/TR EXW) in our upcoming tenders?
Do our supplier contracts include re-opener clauses for duty or subsidy policy shifts?
Are EU–Turkey shipments consistently backed by correct A.TR/e-A.TR documentation?
Does our supplier map cover Hungary and Turkey hubs where localized sourcing is building?
Are FX (USD/EUR), freight indices (WCI), energy (Brent/TTF), and critical metal prices embedded into our tiering and negotiation baselines?
3-Minute Readiness Diagnostic
Capability | Fully confident | Not sure | No time |
|---|---|---|---|
Dual-lane pricing (China DDP vs EU/TR EXW) mapped | ☐ | ☐ | ☐ |
Duty-change / subsidy re-opener clauses in contracts | ☐ | ☐ | ☐ |
EU–Turkey A.TR documentation process owned | ☐ | ☐ | ☐ |
Supplier map includes Hungary & Turkey hubs | ☐ | ☐ | ☐ |
FX, freight, energy, metals baselines integrated | ☐ | ☐ | ☐ |
🆕 Audience Question of the Week — Tariffs & HTS (U.S.)
Scope: U.S.-specific. Not a legal advice.
Q: “For U.S. importers in retail, automotive, manufacturing, or medical devices: can tariff impact on open sourcing projects be reduced by changing HTS codes? I just want to understand how HTS and tariff-% changes affect landed cost.”
A: HTS codes aren’t a loophole. They must reflect the accurate legal classification of the product as imported. Tariff exposure in open (re-)sourcing projects is best managed by scenario modeling: pair the correct HTS with potential country of origin to see the landed-cost swing, then consider lawful tools such as tariff engineering before import, USMCA origin qualification (Canada/Mexico), Foreign-Trade Zones, first-sale valuation, and duty drawback. Note that anti-dumping/countervailing orders apply by scope, regardless of HTS. (See attached PDF for a plain-English playbook, step-by-step checks, and references.)
🆕 Find more information in this Attachment, created exclusively for the ProcWee™ audience: #1 Supporting Documents - Tariff Impact & HTS Codes (SEP 2025)
If you enjoy having documents for your daily business in SCM or Procurement, vote here for more!
We read every message. Reply to this email with your question - our ProcWee™ Research Desk reviews all reader mail and selects one question to feature each week.
One-Line Verdict
BYD’s EU assembly shift is redrawing supplier maps and tariff exposures. With stable energy, freight, and FX backdrops, this looks like a structural sourcing shift—not a one-off pivot.
Sources
Reuters. (2025, Sept 8). China’s BYD to produce all EVs for Europe locally by 2028. Retrieved from https://www.reuters.com/business/autos-transportation/chinas-byd-produce-all-evs-europe-locally-by-2028-executive-says-2025-09-08/
Reuters. (2025, Sept 8). BYD to start Hungary EV plant by end-2025. Retrieved from https://www.reuters.com/business/autos-transportation/chinas-byd-start-hungary-ev-plant-by-end-2025-executive-says-2025-09-08/
Reuters. (2025, Sept 9). Hybrid cars are not a low-emission fix, campaign group says. Retrieved from https://www.reuters.com/sustainability/climate-energy/hybrid-cars-are-not-low-emission-fix-meet-eu-co2-targets-says-campaign-group-2025-09-09/
European Commission – DG TRADE. (2024, Dec 12). EU imposes definitive countervailing duties on BEVs from China. Retrieved from https://trade.ec.europa.eu/access-to-markets/en/news/eu-commission-imposes-countervailing-duties-imports-battery-electric-vehicles-bevs-china
Financial Times. (2025, Mar 19). EU probes BYD plant in Hungary under Foreign Subsidies Regulation. Retrieved from https://www.ft.com/content/0ef28741-6194-4ee6-8f23-945415de7458
European Commission – DG TAXUD. (2024, Jul 5). New A.TR rules; electronic A.TR accepted. Retrieved from https://taxation-customs.ec.europa.eu/news/new-atr-movement-certificate-rules-eu-turkiye-customs-cooperation-2024-07-05_en
United Nations – Security Council. (2025, Jul 15). Resolution 2787: Red Sea monitoring extended to January 2026. Retrieved from https://press.un.org/en/2025/sc16120.doc.htm
Reuters. (2025, Sept 7). Red Sea cable cuts disrupt internet across Asia & Middle East. Retrieved from https://www.reuters.com/world/middle-east/red-sea-cable-cuts-disrupt-internet-across-asia-middle-east-2025-09-07/
AP News. (2025, Sept 7). Red Sea cable cuts disrupt internet. Retrieved from https://apnews.com/article/red-sea-undersea-cables-cut-internet-disruption-0b08fc5f02daf72710e0010c11ea21ae
Open Logistics Foundation. (2025, Jun 2). Industry-ready open-source eCMR software. Retrieved from https://openlogisticsfoundation.org/open-logistics-foundation-presents-industry-ready-ecmr-software-at-transport-logistic-2025/
IATA. (2025). ONE Record — preferred data standard, effective 1 Jan 2026. Retrieved from https://www.iata.org/en/fact-sheets/one-record/
Eurometal. (2025, Sept). EU hot-rolled coil prices ≈ €548/t. Retrieved from https://eurometal.net/european-hrc-prices-drop-slightly-market-direction-unclear/
LME; Westmetall. (2025, Sept 9). Nickel cash prices. Retrieved from https://www.westmetall.com/en/markdaten.php?action=table&field=LME_Ni_cash
TradingEconomics. (2025, Sept 9). EU Natural Gas (TTF). Retrieved from https://tradingeconomics.com/commodity/eu-natural-gas
TradingEconomics. (2025, Sept 9). Lithium carbonate (China). Retrieved from https://tradingeconomics.com/commodity/lithium
Drewry. (2025, Sept 4). World Container Index. Retrieved from https://www.drewry.co.uk/supply-chain-advisors/supply-chain-expertise/world-container-index/
Reuters. (2025, Sept 9–10). Oil market updates, macro snapshots. Retrieved from https://www.reuters.com/business/energy/hsbc-sees-gradual-unwinding-opec-voluntary-cuts-over-next-year-2025-09-09/
ISM. (2025, Sept 2). August 2025 Manufacturing PMI — 48.7. Retrieved from https://www.ismworld.org/supply-management-news-and-reports/reports/ism-pmi-reports/pmi/august/
