Source: AFP
Top Chinese automaker BYD will build a car factory in Hungary, the company said on Friday, as it pushes ahead with plans to expand into Europe despite growing concerns about fair competition.
BYD Europe said the factory in the southern city of Szeged will mark “an important step towards green mobility in Europe,” as it made the announcement on X, formerly Twitter.
Earlier this year, the company became the first global manufacturer to surpass the five million milestone in electric vehicle (EV) production, crowning itself “the world’s leading manufacturer of new energy vehicles and power batteries.”
However, the growing success of Chinese EV companies in foreign markets is starting to come under scrutiny.
In China, the EV sector has benefited from decades of Beijing-issued subsidies to related technology sectors.
The European Union announced an investigation into these subsidies this year, citing unfair competition.
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But Hungarian Prime Minister Viktor Orbán’s long-standing “look east” policy has seen Asian businesses offered lucrative tax breaks, infrastructure and job-creating subsidies to lure them to his country.
The plant “will be one of the biggest investments in the history of the Hungarian economy,” Foreign Minister Péter Szijártó said in a statement, without giving a specific figure.
BYD already has operations in Hungary, including an electric bus factory.
With the new car plant, the company “hopes to accelerate the entry of new energy passenger vehicles into the European market, further deepen (the company’s) global layout and actively promote the green transformation of the global energy structure,” it said on Chinese social media. NETWORKING.
The plant will be built in phases and is expected to create thousands of local jobs, BYD said.
Hungary is set to become a major producer of EV batteries — second in Europe after Germany — with a massive factory also being planned by China’s CATL Group.
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Originally specializing in battery production, BYD moved into the automotive sector in 2003 and has since become heavy on EV production.
It still faces stiff competition from various local brands — including XPeng, Nio and Geely — but reported record quarterly profits in October.
Foreign automotive leaders such as Tesla, BMW, Mercedes and Audi depend on BYD for their batteries.
The company stopped production of gasoline cars last year and now focuses exclusively on hybrid and electric models.
BYD launched its 2022 European offensive at the Paris Motor Show and is aiming for growing sales with the Atto 3 small SUV and Dolphin hatchback.
Source: AFP