BYD has announced plans to establish a new energy electric vehicle production base in Szeged, Hungary, with construction to be carried out in phases. The project is expected to create thousands of jobs in the local area. According to the Financial Times, the factory is anticipated to be located near the Belgrade-Budapest railway line, a joint venture between Chinese and local businesses.
In an official statement, BYD mentioned that the new production base aims to utilize advanced process equipment and highly automated production processes, creating a globally leading electric vehicle manufacturing facility.
Michael Shu, CEO of BYD Europe, stated earlier this year that the company hopes to become the largest electric vehicle seller in Europe, occupying ten percent of the region's pure electric vehicle sales by the end of 2030, if possible. Currently, BYD already has a bus production base in Hungary, but it aspires to establish a fully mature automobile production base to achieve its ambitions of dominating the European electric vehicle industry by the end of 2030.
Shu revealed that BYD had considered various factory locations, including Germany, France, Spain, Poland, and Hungary, for its first European factory. Earlier this year, Hungarian Prime Minister Viktor Orban met with BYD Chairman and Founder Wang Chuanfu.
Hungary has attracted investments from leading Chinese investors, particularly in the field of electric vehicle battery manufacturing, with these investors bringing their own workforce to serve the factories. Orban also stated, "We expect to mobilize hundreds of thousands of potential workers in the Szeged area."
BYD officials noted that Hungary, located in the heart of the European continent and serving as a crucial transportation hub, has a rich history of automotive industry development, advanced infrastructure, and a mature automotive industry foundation. As the European market transitions to electric vehicles, many Chinese brands aim to gain market share in Europe. Furthermore, as Hungary is a partner in China's Belt and Road Initiative, the country has attracted numerous new automotive or battery factories.
While other brands like NIO and Great Wall Motors are also considering Hungary for future factory establishments, specific manufacturing plans have not yet been outlined. Therefore, BYD's factory will be the first large-scale automotive factory established by a new Chinese brand in Europe.
BYD stated that the construction of the production base will positively contribute to local economic development, drive technological exchange and innovation between China and Hungary, and leverage BYD's full industry chain advantages to help build a green "ecosystem" in the local area. BYD aims to accelerate the pace of entering the European market with new energy passenger cars, further deepen its global presence, and actively promote the global green transformation of energy structures.
