*

Company launching production at Hungarian plant this year

*

Has plan to start operation a plant in Turkey in 2026

*

Altavilla: Buffett's BYD exit was routine investment

decision

MILAN, Sept 24 (Reuters) - Leading Chinese automaker BYD

will need to manufacture auto batteries in Europe as

its car production in the region is expected to expand in the

coming years, the group's special adviser for Europe said on

Wednesday.

BYD aims to produce all its EVs for sale in Europe locally

within three years, helping it avoid EU tariffs, Executive Vice

President Stella Li said earlier this month, adding plug-in

hybrids should dominate the group's European sales in the short

term.

The Chinese manufacturer is building a factory in Hungary

that should start output at the end of this year, while another

one in Turkey is due to start production in 2026, for a total

capacity of around 500,000 vehicles a year.

Asked whether BYD is considering a further facility serving

Europe, its special adviser Alfredo Altavilla said the group

would also need to produce batteries in the region.

"It does not make sense to invest in car assembly (in

Europe) but bring batteries from China," he said during an

automotive conference in Milan.

The Chinese automaker originally sold only fully-electric

cars (EVs) in Europe but it has started also offering plug-in

hybrids, which are proving popular among consumers.

Altavilla said BYD still had to decide whether to prioritise

a third assembly plant or a battery making facility, as it was

now totally focused on launching the Hungarian plant and

bringing it to full speed.

He added BYD was considering all European countries for that

further investment, and interacting with local authorities.

"Several factors come into play when choosing a new location

... such as energy cost, which is objectively one of the most

important competitiveness factors, because both assembly and

battery factories are energy-intensive businesses," he said.

Altavilla also commented on the recent decision by Warren

Buffett's Berkshire Hathaway ( BRK/A ) to fully exit BYD, ending

a 17-year investment, rejecting speculation the move was a sign

of mistrust in the company.

Buffett "made a profit of 20 times the capital he invested.

He did very well to do what he did," he said. "We've been

extremely glad to have had Buffett (as an investor), but the

fact that he monetised his position is exactly what Berkshire

Hathaway ( BRK/A ) does for a living: buying, earning and selling".