BYD, the Chinese Tesla Competitor, to Establish Electric Vehicle Manufacturing Plant in Hungary
BYD, a leading competitor to Tesla in the electric vehicle (EV) market, is set to establish its first EV plant in Europe, situated in Hungary.
The Hungarian Foreign Minister, Péter Szijjártó, revealed plans for the facility to be constructed near Szeged, anticipating the creation of thousands of jobs and highlighting it as a significant investment in Hungary's economic landscape. The government will offer BYD financial incentives, with details to be disclosed later.
Szijjártó emphasized the plant's role in bolstering Hungary's economy and its aspiration to become a central player in the global EV industry. Hungary is already positioning itself as a chief manufacturer of lithium-ion batteries, with companies like Samsung and China's CATL having established operations there, despite some local and environmental concerns.
With its new facility, BYD extends its presence in Hungary beyond its electric bus production in Komarom and marks a significant move as the first major Chinese consumer EV plant in Europe.
Szeged's Mayor, Laszlo Botka, attributes the city's selection to its strategic location and developments in logistics. The city benefits from its proximity to the Hungarian-Serbian border and a rail corridor linked to China's Belt and Road initiative.
The announcement follows extensive discussions, totaling 224 negotiation rounds, between BYD and the Hungarian government.