BYD to open EV factory in Hungary

BYD has officially announced its plans to construct its inaugural Electric Vehicle (EV) and Plug-in Hybrid (PHEV) factory in Szeged, Hungary. In addition to manufacturing cars, BYD will also produce batteries at this new facility, marking the initial step toward the company’s objective of capturing a 10% share of European EV sales by 2030.

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The establishment of this production base is expected to significantly boost the development of the local economy, creating thousands of jobs over the next few years. Situated in the heart of the European continent, Hungary serves as a vital transportation hub. The Hungarian government has adopted an open-arms policy toward car manufacturers, providing substantial benefits such as low tax rates. BYD follows in the footsteps of German automotive giants that have been present in Hungary since the end of communism. Audi, for instance, has invested 11.5 billion euros in its Hungarian facilities over the last 30 years.

BYD aims to manufacture 100,000 units annually at the new plant, introducing a flood of high-quality and affordable EVs into the European market. As Hungary is a member of both the EU and the Schengen zone, no tariffs will be applied when these vehicles are sold elsewhere in the EU. The new plant is anticipated to roll out its first EV in two years, marking the Chinese EV manufacturer’s inaugural European factory. Unlike other Chinese EV companies, including MG or Nio, which produce their EVs in China, BYD is the first to announce plans for a European factory. The UK was also considered as a plant location, but Brexit made that option too costly for BYD.