BYD Expands Presence in Hungary with State-of-the-Art EV and Battery Plant.
In a groundbreaking move reported by the Financial Times, BYD (OTCMKTS: BYDDF) is poised to construct a cutting-edge electric vehicle (EV) and battery manufacturing facility in Szeged, southern Hungary. The company is currently in the final stages of negotiations with the Hungarian government for a substantial multi-billion-euro investment, and an official announcement is anticipated as early as Friday.
According to insider sources, the new plant in Szeged will serve as BYD’s flagship production facility for both electric vehicles and batteries. While BYD already operates a successful bus factory in Hungary, this expansion signifies the company’s strategic initiative to establish a comprehensive car plant. The goal is clear: BYD aspires to assert its dominance in Europe’s burgeoning EV industry by the close of this decade.
Notably, the Szeged plant is slated to be the first large-scale car factory in Europe initiated by a Chinese automotive brand. While other players like Nio (NYSE: NIO) and Great Wall Motors have expressed interest in the region, BYD is pioneering the way by not only targeting Europe but also by emphasizing plans for localized manufacturing.
BYD’s foray into the European market began with its all-electric bus plant in Hungary, marking the company’s inaugural venture on the continent. In June 2021, BYD delivered its first all-electric bus to Hungary’s largest public transport operator, Volánbusz.
Hungary’s Minister of Foreign Affairs and Trade, Peter Szijjarto, announced during his visit to BYD’s headquarters in Shenzhen that BYD is set to establish a battery assembly plant in Fót, a small northern Hungarian town, with an investment of 10 billion forints ($29.8 million). The Fót facility, however, will focus exclusively on battery assembly, not production.
As part of its expansion strategy, BYD commenced recruitment activities in Hungary in July, aiming to fill key positions such as director of government affairs and equipment engineer responsible for production line equipment maintenance.
BYD’s ambitious vision extends beyond Hungary. Michael Shu, BYD’s European Chief Executive, revealed the company’s aspiration to become the leading seller of EVs in Europe, targeting one-tenth of the region’s EV sales by 2030.
Hungary’s appeal to the automotive industry has grown, in part due to its membership in China’s “Belt and Road” initiative, attracting several car and battery factories.
As China’s largest new energy vehicle (NEV) maker, BYD continues its global expansion. In November 2022, BYD sold an impressive 301,903 NEVs, including 30,629 in overseas markets. This expansion includes ongoing projects in Thailand, Uzbekistan, and Brazil, solidifying BYD’s position as a major player in the rapidly evolving electric mobility sector.
