Business 6 November 2023, 9:30am

China's biggest carmaker to build new plant in Hungary - German newspaper

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According to press reports, the Chinese electric vehicle giant BYD could set up its first European car factory in Hungary. This time, however, the Frankfurter Allgemeine Sonntagszeitung, citing internal sources, confirms that the decision is final and that the Chinese company will indeed build its newest car plant in Hungary.

BYD, the world's leading plug-in electric car manufacturer, may indeed build a car factory in Hungary. When contacted by Reuters, BYD confirmed that it is still in the process of determining the ideal location for the factory. It also said it would make an official announcement on the matter at the end of the year.

According to leaked information, BYD's first European car factory could be built in Hungary, the investment could be realised in Szeged, writes vezess.hu. France, Poland, Germany and Spain were also in the running for the project. The information was reported by Reuters, citing the Frankfurter Allgemeine Sonntagszeitung, which said that BYD has made the decision and will build its first European car plant in Hungary.

When contacted by Reuters, BYD said it was still in the process of looking for a suitable European site and that an official decision would not be announced until the end of the year. The Hungarian government had not responded to the news agency by the time of publication.

On the outskirts of Szeged, land expropriation procedures have already started for a major industrial investment. Prime Minister Viktor Orbán visited China two weeks ago and also visited the BYD car manufacturer in Shenzhen.

Background

BYD is a Chinese company founded in February 1995, initially producing Ni-Cd batteries for mobile phones, and a year later lithium-ion batteries. Before 2000, it had branches in Europe and the US, and in 2002 it was listed on the Hong Kong Stock Exchange. Also in 2002, BYD acquired Qinchuan Automobile Company, and a year later, in 2003, it set up a subsidiary, BYD Auto. BYD is now known for this automotive segment, having become one of the world's largest electric car manufacturers, and the second largest player in electric batteries.

BYD already has a presence in Hungary in several areas, and the company produces electric buses in Komárom, which are highly popular both in Hungary and the rest of Europe.

In June, Minister of Foreign Affairs and Trade Péter Szijjártó announced that BYD would invest HUF 10 billion to set up a battery assembly plant in Fót, thus further strengthening the company's position in Hungary. In September, it was announced that BYD would also enter the Hungarian market with three electric car models. Two dealerships (one of them a subsidiary of AutoWallis) will launch BYD in Hungary: BYD ATTO 3, BYD DOLPHIN and BYD SEAL.