Recently, Hungarian Prime Minister Viktor Orbán shared a photo with BYD Chairman Wang Chuanfu on social media, writing, "The future of the automotive industry will be written in Hungary! The world's largest electric vehicle manufacturer BYD will build its first car factory in Europe in the city of Szeged."
Prior to this, BYD had officially signed a land pre-purchase agreement for its passenger car factory in Szeged, Hungary, with the Szeged city government, marking a substantial breakthrough in BYD's localization process in the European region.
So why did BYD ultimately choose Szeged, Hungary? In fact, when announcing the factory's plans, BYD mentioned that Hungary is located in the heart of the European continent, serving as an important transportation hub. Moreover, Hungary has a long history of automotive industry development, with well-developed infrastructure and a mature automotive industry foundation, providing a good opportunity for BYD to build its factory locally.
Under the leadership of current Prime Minister Orbán, Hungary has become one of the leading electric vehicle industry centers in Europe. Over the past five years, Hungary has attracted approximately €20 billion in investments related to electric vehicles, including a €7.3 billion investment by CATL in constructing a battery factory in the eastern city of Debrecen. According to relevant data, by 2030, CATL's 100GWh capacity will make Hungary the world's fourth-largest battery producer, following China, the United States, and Germany.
Data from the Hungarian Ministry of Economic Development shows that investments from Asian countries currently account for 34% of foreign direct investment, whereas this proportion was less than 10% before 2010, thanks to the extremely friendly and open attitude of the Hungarian government toward foreign companies (especially Chinese companies) and its highly efficient and flexible operating methods.
As for Szeged, it is the fourth-largest city in Hungary and the capital of Csongrád County, serving as a central city, economic hub, and cultural center in southeastern Hungary. The city is a hub for railways and river ports, and BYD's new factory is expected to be located near the Belgrade-Budapest railway line jointly built by Chinese and local companies, providing convenient transportation. Szeged has a well-developed light industry, including cotton spinning, food, glass, rubber, clothing, furniture, metal processing, shipbuilding, and other industries. Petroleum and natural gas are available in the suburbs, and corresponding processing industries have been developed.
BYD's interest in Szeged can be summarized as follows:
Prime Location: Szeged is located in southeastern Hungary, close to Slovakia and Romania, serving as a gateway between continental Europe and the Mediterranean region.
Convenient Transportation: As a major transportation hub in Hungary, Szeged has a developed network of roads, railways, and air transport, facilitating connections to cities across Europe.
Strong Economic Power: Szeged is an important economic center in Hungary, with a large number of manufacturing, service, and commercial activities. Many international companies and investors choose to establish headquarters or branches here.
Abundance of Educational and Research Institutions: Szeged is home to several renowned universities, such as the University of Szeged, Szeged University of Science and Technology, and Szeged College of Arts, attracting a large number of domestic and international students and researchers. These institutions bring rich talent resources to the city.
