China’s leading electric automaker BYD has announced plans to build a car factory in Hungary, signaling its expansion into the European market. The factory, located in the city of Szeged, is seen as a significant step towards promoting green mobility in Europe. BYD Europe made the announcement on X, formerly known as Twitter.
Earlier this year, BYD achieved a milestone by becoming the first global manufacturer to produce over five million electric vehicles (EVs), solidifying its position as the world’s leading manufacturer of new energy vehicles and power batteries. However, the success of Chinese EV firms in foreign markets has raised concerns about fair competition.
In China, the EV sector has benefited from long-standing subsidies issued by the Beijing government in related technological fields. The European Union has recently launched an investigation into these subsidies, citing unfair competition. Despite these concerns, Hungarian Prime Minister Viktor Orban’s pro-East policy has enticed Asian businesses to invest in Hungary through lucrative tax breaks, infrastructure support, and job creation subsidies.
The car factory in Hungary is expected to be one of the largest investments in the country’s economic history, according to Foreign Minister Peter Szijjarto. However, specific financial details were not disclosed by the company. BYD already operates an electric bus factory in Hungary and aims to accelerate the entry of new energy passenger vehicles into the European market with the new car factory. The company also plans to strengthen its global presence and actively promote the green transformation of the global energy structure.
The construction of the plant will be carried out in phases and is projected to generate thousands of local job opportunities, according to BYD. Hungary is poised to become a major producer of EV batteries in Europe, second only to Germany, with Chinese group CATL also planning a significant factory in the country.
BYD launched its European expansion strategy in 2022 at the Paris Motor Show, with the aim of boosting sales through its Atto 3 small SUV and Dolphin hatchback models. The move to establish a car factory in Hungary demonstrates BYD’s commitment to expanding its presence in Europe’s rapidly growing electric vehicle market.