Hungary chosen as the location for China’s BYD’s first electric vehicle factory in Europe

A man looks at a BYD electric vehicle in Budapest in October, when the Chinese automaker started selling cars in Hungary. (Getty Images)

BUDAPEST, Hungary — Chinese automaker BYD, one of the world’s largest electrical vehicle manufacturers, will open its first European EV production factory in Hungary, according to the country’s foreign minister. This news is the most recent development in Hungary’s bid to position itself as a global hub for EV manufacturing.

BYD’s new plant will be located near the southern Hungarian city of Szeged and is expected to bring thousands of jobs to the region, stated Foreign Minister Péter Szijjártó. He also disclosed that the Hungarian government would offer financial incentives to BYD for the construction of the plant.

This major investment in Hungarian economic history will solidify the country’s position in the global electric automotive transition. According to Szijjártó, Hungary has been actively seeking to become a global hub of lithium-ion battery manufacturing, in line with the growing trend of governments worldwide to reduce greenhouse gas emissions through the adoption of electric vehicles (EVs).

Hungary’s strategy to entice foreign investment includes welcoming companies such as South Korea’s Samsung and China’s CATL, both of which have set up factories in the country to serve the needs of foreign car manufacturers like Audi, BMW, and Mercedes-Benz as they make the switch to battery-powered vehicles.

At the same time, BYD is making significant moves in Hungary, with the Szeged factory being the first major consumer EV production facility in Europe for a Chinese carmaker. The city’s mayor, Laszlo Botka, attributes the selection of Szeged as the factory’s location to the city’s geographical position, logistical development, and the ongoing preparation of the factory site.

The plant will be situated near Hungary’s border with Serbia, adjacent to a rail corridor that forms part of China’s international trade network. Szijjártó disclosed that BYD’s decision to open its plant in Hungary came after 224 rounds of negotiations with the Hungarian government.

Overall, this move underlines Hungary’s technical expertise and investment potential and positions the country as a global leader in the technological revolution. With the addition of the BYD factory, Hungary continues to strengthen its foundation for long-term economic growth and solidifies its position in the global electric automotive transition.