SHANGHAI: Chinese electric vehicle (EV) automaker BYD has unveiled plans to build a car manufacturing plant in Hungary, signaling a significant move into the European market.
The announcement, made on the social media platform X (formerly Twitter) by BYD Europe, underscores the company’s commitment to advancing green mobility in Europe. Despite concerns over fair competition and an ongoing European Union investigation into Chinese EV subsidies, BYD is set to establish the factory in the southern Hungarian city of Szeged.
Earlier this year, BYD achieved the milestone of surpassing five million electric vehicle (EV) productions, solidifying its position as the leading global manufacturer of new energy vehicles and power batteries. While Chinese EV firms face increased scrutiny abroad, Hungary, under Prime Minister Viktor Orban’s pro-Eastern business approach, has offered incentives such as tax breaks and subsidies to attract Asian investments.
Foreign Minister Peter Szijjarto highlighted that the BYD factory would be among the largest investments in Hungary’s economic history, although specific figures were not disclosed. BYD, which already operates an electric bus factory in Hungary, aims to expedite the introduction of new energy passenger vehicles into the European market through the new car factory. The plant is anticipated to create thousands of local jobs and will be constructed in phases.
Hungary, emerging as a key player in EV battery production, is set to rank second in Europe, following Germany. Another Chinese company, CATL, also plans a substantial EV battery factory in Hungary. BYD, originally focused on battery production, expanded into the automotive sector in 2003 and has become a major player in EV production.
Despite facing competition from local brands like XPeng, Nio, and Geely, BYD reported a record quarterly profit in October and continues to supply batteries to foreign automotive leaders such as Tesla, BMW, Mercedes, and Audi.
Having ceased gasoline-powered car production in the previous year, BYD now concentrates exclusively on hybrid and electric models.
The company initiated its European expansion in 2022 at the Paris Motor Show, introducing models like the Atto 3 small SUV and the Dolphin hatchback.
