Massive Investment: Amplified Manufacturing of Electric Heavy Vehicles by BYD in Hungary - $94m
Chinese Automaker BYD Expands Presence in Hungary with Two New Plants
Chinese automaker BYD is set to increase its footprint in Hungary with a significant investment of 32 billion forints (94 million dollars) in a new plant in the northern town of Komarom, and another electric car factory in southern Hungary.
The announcement was made by Hungarian Foreign Minister Peter Szijjarto, who hinted that the investment could be a reward for Hungary's condemnation of European tariffs on Chinese EVs. The government will also support the project with a 3.1 billion forint grant.
BYD's latest investment in Hungary comes after a decade of growing ties between the two countries, with right-wing Prime Minister Viktor Orban bringing Hungary closer to Beijing since he came to power in 2010.
The new plant in Komarom will triple BYD's annual capacity to 1,250 electric buses and trucks. The company also plans to establish a research and development laboratory alongside the new facility, aiming to create a European center in Hungary.
This move by BYD is not surprising, given Hungary's growing status as an important trade and investment partner for China. Last year, Chinese investments in Hungary accounted for nearly a third of Chinese inward investment into Europe, representing 64 large projects. The total volume of these investments reached a staggering 5.5 trillion forints (16 billion dollars).
Notable Chinese companies, such as CATL and EVE, have already constructed huge battery plants in Hungary, with BMW, Mercedes, and Audi having built large automobile factories there. BYD has also established a factory for electric vehicles in Hungary.
With these new investments, BYD aims to strengthen its position in the European EV market. The company expects to benefit from Hungary's strategic location, skilled workforce, and supportive government policies.
As Hungary continues to attract Chinese investments, it remains to be seen how these relationships will evolve in the future. However, one thing is certain: Hungary is quickly becoming a hub for EV and battery production in Europe.
