Several EU countries, including Germany and France, had tried to attract the Chinese electric car manufacturer, which is the world’s second-largest battery manufacturer.
Now it’s official – BYD is expanding its network of production facilities in Europe and has decided to build its factory in the south of Hungary in the city of Szeged.
According to the company, electric cars and batteries are to be manufactured there. However, no information has been provided about the extent of the investment or the expected start of production. The Hungarian Government is participating in the project and experts expect a production outlay of 200,000 cars per year.
BYD is already active in Hungary; it produces electric buses in the Hungarian city of Komarom. In Europe, the group is now represented in 17 countries.
Since production costs in China are significantly cheaper than in Europe, the EU Commission has considered imposing import duties on Chinese electric vehicles. By building the new factory in Hungary, BYD is avoiding the planned punitive tariffs and is thus setting an example for the entire automotive industry.
Hungary is also a popular location for German manufacturers, where electric cars and engines from Audi and Mercedes roll off the assembly line. BMW is also building a factory in Debrecen, eastern Hungary.