BYD Establishes European Headquarters for Electric Vehicles in Hungary
The Chinese electric vehicle manufacturer BYD announces a substantial investment in Hungary, creating 2,000 jobs and enhancing ties between Hungary and China.
The Chinese electric vehicle manufacturer BYD has officially designated Hungary as its European headquarters for electric vehicle production, a development announced at a press conference in Budapest attended by Prime Minister Viktor Orbán, BYD founder and chairman Wang Chuanfu, and the governor of Guangdong province, Wang Weichung.
The Hungarian Foreign Minister, Péter Szijjártó, signed a strategic cooperation agreement on behalf of the Hungarian government, which was published in the Hungarian Official Gazette on Wednesday.
According to Szijjártó, the establishment of the corporate and development center in Budapest will entail an investment of HUF 100 billion (approximately USD 273 million).
The new facility is expected to create 2,000 jobs, with 90% of these positions designated for highly educated employees, primarily holding engineering degrees.
Additionally, the strategic agreement outlines that the Budapest center will employ Hungarian university students participating in PhD programs, university researchers, and students in dual vocational training programs.
Szijjártó emphasized that at least 50% of the patents developed at this new center will be registered in Hungary, and BYD is committed to collaborating with a variety of local Hungarian enterprises as suppliers.
During the press conference, Wang Chuanfu remarked that the European headquarters would facilitate greener transportation for the European population and strengthen economic relations between Hungary and China.
Prime Minister Orbán expressed gratitude for the partnership, indicating that this agreement signifies Hungary's future role in automobile production.
He noted that since successfully integrating into the global automotive industry in 1990, Hungary is now entering a new era of technological advancements and new manufacturers, making it essential for the Hungarian industry to engage in electromobility.
Orbán acknowledged that the introduction of new technologies often involves both peaks and troughs but insisted that entry into this new era requires a strategic Hungarian-Chinese partnership.
He claimed the initiative will modernize and fortify the Hungarian economy, positioning it as a crossroads between East and West.
The Prime Minister stressed the necessity of Chinese investments for Hungary's economy, which also includes projects such as the Budapest-Belgrade railway and the V0 railway ring.
Concerning Hungarian-China relations, Orbán stated that Europe’s future lies not in confrontation but in cooperation.
BYD is currently constructing a factory in Szeged, where production is anticipated to commence within the year.
In the first phase, the facility will have the capacity to produce 150,000 vehicles annually, with a second phase anticipated to add another 150,000 units, potentially reaching a total production capacity of 300,000 vehicles once the plant is fully operational.
The Hungarian battery manufacturing sector is in need of revitalization, as industrial production decreased by 5.3% year-on-year in December 2024 after adjusting for workday effects, with vehicle manufacturing down by 21% and battery and dry cell production declining by 51%.
The Hungarian Foreign Minister, Péter Szijjártó, signed a strategic cooperation agreement on behalf of the Hungarian government, which was published in the Hungarian Official Gazette on Wednesday.
According to Szijjártó, the establishment of the corporate and development center in Budapest will entail an investment of HUF 100 billion (approximately USD 273 million).
The new facility is expected to create 2,000 jobs, with 90% of these positions designated for highly educated employees, primarily holding engineering degrees.
Additionally, the strategic agreement outlines that the Budapest center will employ Hungarian university students participating in PhD programs, university researchers, and students in dual vocational training programs.
Szijjártó emphasized that at least 50% of the patents developed at this new center will be registered in Hungary, and BYD is committed to collaborating with a variety of local Hungarian enterprises as suppliers.
During the press conference, Wang Chuanfu remarked that the European headquarters would facilitate greener transportation for the European population and strengthen economic relations between Hungary and China.
Prime Minister Orbán expressed gratitude for the partnership, indicating that this agreement signifies Hungary's future role in automobile production.
He noted that since successfully integrating into the global automotive industry in 1990, Hungary is now entering a new era of technological advancements and new manufacturers, making it essential for the Hungarian industry to engage in electromobility.
Orbán acknowledged that the introduction of new technologies often involves both peaks and troughs but insisted that entry into this new era requires a strategic Hungarian-Chinese partnership.
He claimed the initiative will modernize and fortify the Hungarian economy, positioning it as a crossroads between East and West.
The Prime Minister stressed the necessity of Chinese investments for Hungary's economy, which also includes projects such as the Budapest-Belgrade railway and the V0 railway ring.
Concerning Hungarian-China relations, Orbán stated that Europe’s future lies not in confrontation but in cooperation.
BYD is currently constructing a factory in Szeged, where production is anticipated to commence within the year.
In the first phase, the facility will have the capacity to produce 150,000 vehicles annually, with a second phase anticipated to add another 150,000 units, potentially reaching a total production capacity of 300,000 vehicles once the plant is fully operational.
The Hungarian battery manufacturing sector is in need of revitalization, as industrial production decreased by 5.3% year-on-year in December 2024 after adjusting for workday effects, with vehicle manufacturing down by 21% and battery and dry cell production declining by 51%.
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