BYD Attacks Europe with Factories, While Porsche Flirts with a Forgotten Engine
This week in the automotive world brings a clash of two vastly different worlds: Chinese giant BYD is building a European production empire, while Porsche is reportedly returning to an engine concept from a quarter-century ago to power its future hypercar. We take a look at what both stories mean for the market.
01 · EV Expansion
BYD Bets Big on Europe: Three Factories and One Battery Plant
BYD's sales in its home market of China are slowing, but outside the country's borders the brand is growing at a pace that's turning heads across the entire industry – in Poland, the Chinese manufacturer has just taken the lead among brands from the Middle Kingdom [1]. The response to this dynamic growth is a plan to build as many as four new plants in Europe: three assembly factories and one battery plant [1].
The most advanced investment is in Hungary – the plant in Szeged is set to reach full-scale production by the end of 2026, with a target capacity of as much as 200,000 cars a year [1]. This shows just how seriously BYD is treating the European market – not as an add-on to Chinese production, but as a fully-fledged export hub.
The next location remains an open question, though Spain, France and Italy are all under consideration. A decision – as company representatives have announced – is expected before the end of 2026 [1]. What's notable is the thinking behind the pace of expansion: BYD is well aware that this kind of buildout doesn't happen "overnight," and at the same time it has to balance its own production targets with EU requirements on local manufacturing [1]. In practice, this means the company is considering taking over existing, underutilized factories rather than building from scratch – which would allow it to ramp up volumes more quickly.
For anyone watching the European market, and the Polish market in particular, this is a signal that Chinese EV expansion is entering a new phase – moving toward local assembly within Europe itself, rather than just importing finished cars from behind the Great Wall.
02 · Engines & Technology
Is Porsche Planning a Surprise? The Flat-Eight Returns
From a completely different corner of the industry, but just as intriguing, is the story swirling around Porsche's future hypercar. According to the latest reports, the brand is working on a project codenamed "S1," which would reportedly receive a flat-eight engine – a layout Porsche has never before used in any production model [2].
Interestingly, this isn't the first time engineers in Zuffenhausen have considered such a unit. A similar concept already emerged in the early 2000s, during work on a project based on the Cayman's floor pan – ultimately abandoned [2]. The name "S1" is no coincidence either: more than a quarter-century ago it belonged to a project meant to receive a V8 engine, before the brand ultimately settled on the Le Mans-derived V10 – and so the legendary Carrera GT was born [2].
Reports, citing a German business weekly, suggest the new hypercar could become the spiritual successor to the 919 Street concept and the iconic 918 Spyder [2]. If the rumors are confirmed, it would be the first time a flat-eight has found its way under the hood (or rather, behind the driver's back) of a production Porsche – a true event for brand fans and technical connoisseurs of combustion engines alike, especially in an era when hypercars are increasingly turning to hybrid or electric powertrains.
Summary
Summary
From BYD's mass industrial expansion to a niche but fascinating rumor about a Porsche engine – this week shows just how broad the range of topics stirring up the automotive industry can be. One thing is certain: both Chinese EV brands and classic European premium marques still have plenty of surprises in store for us.
If you want to see firsthand where the automotive world is heading today – from electric expansion to the most ambitious engine projects – come visit the Warsaw Motor Show – the Largest Car Show. It's the best place to follow these trends from the front row.
Invitation
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Warsaw Motor Show 2026Footnotes
[1] Carscoops — https://www.carscoops.com/2026/09/byd-european-production-plans/[2] The Drive — https://www.thedrive.com/news/a-flat-eight-porsche-hypercar-is-looking-increasingly-likely-tds