It's speculation that China's largest automaker is setting up shop in Hungary - minister

Speaking to ATV after a committee hearing, Minister of Foreign Affairs and Trade Péter Szijjártó said in relation to the presence of Chinese electric car manufacturer BYD in Hungary that

I don't even want to comment [...] any investment in Hungary will only be announced when there is an agreement about it.

He has not disclosed it either whether there had been any negotiations with BYD to bring their electric car factory to Szeged, Hungary. He has only stated that "I would not like to comment on the whole thing, because we do not comment on such rumours". If we have any announcement to make about new investments in any part of the country, we will make it, he added.

We reported about a week ago that China's BYD (Build Your Dreams), one of the largest electric vehicle makers of the world, would possibly set up its first European car manufacturing plant in Hungary. German paper, the Frankfurter Allgemeine Sonntagszeitung, citing unnamed sources close to BYD, reported that the world's leading plug-in electric car manufacturer did plan to build its first European car factory in Hungary.

However, 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.

This is the matter that Szijjártó did not wish to comment.

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. According to SNE Reserach, BYD is the second largest battery manufacturer in the world after CATL, with a market share of nearly 16%.

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.

Cover photo: VCG/VCG via Getty Images