Chinese automaker BYD said it will establish its European headquarters in Hungary as it prepares to begin local vehicle production, aiming to mitigate the impact of European Commission tariffs on China-made electric vehicles.
The Shenzhen-based company had already announced plans in late 2023 to build a $4.5 billion passenger car factory in Hungary.
The facility is expected to begin production in late 2025, with an annual capacity of around 200,000 vehicles.
BYD executives met with Hungarian government officials late last week to sign a strategic cooperation agreement between the country and the electric vehicle manufacturer.
The new headquarters will be located in Budapest’s 11th District and is expected to create around 2,000 jobs. The site will support sales, after-sales services, vehicle certification and testing, as well as the adaptation of vehicle features to meet regional market requirements.
The Budapest hub will also include a research and development (R&D) center focused on intelligent driving technologies and next-generation EV systems. BYD said it plans to work with local universities and suppliers to strengthen its regional supply chain.
“Our goal is to attract foreign investors who can bring not only manufacturing capabilities but also R&D and innovation,” Prime Minister Viktor Orbán stated at the event, adding that “this investment proves that our big plan is working.”
The Hungarian PM added that if “in the 1990s, Hungary successfully integrated into the global car manufacturing industry, […] today we must talk about the future, because we are in the midst of a technological transition.”
BYD‘s founder and CEO Wang Chuanfu remarked that the partnership is “a major milestone in BYD’s global expansion and demonstrates the vast potential of China-Hungary cooperation,” while also reinforcing the company’s “long-term commitment to the European market.”
Production Overseas
The company first opened Hungarian operations in 2016 — an electric bus factory in the city of Komárom. In late 2023, BYD took the collaboration further by announcing it chose the country for its first European passenger vehicle plant. Production is set to roll out in the second half of this year.
Last week, a satellite image revealed by Business Insider showed the 300-hectare site on the outskirts of Szeged, which is expected to produce around 200,000 vehicles a year.
The company started global expansion in 2021, with overseas output evolution showing a tendency of growth since the beginning of 2024.
It delivered 380,089 vehicles in April, with sales outside China reaching a new record with over 78,000 units. BYD aims to sell 5.5 billion vehicles in 2025 and aims for half of its global sales to come from overseas markets by 2030.
The company is also constructing a passenger vehicle factory in Brazil, which will start production in June, which will manufacture around 150,000 vehicles yearly.
Recently, its ‘Shenzhen’ ship departed from Jiangsu, setting sail to Brazil. The ship carries over 7,000 NEVs and it is expected to reach the Itajai Port in four weeks.
