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Chinese electric vehicle giant BYD to build its first European production base in Hungary

China’s BYD, considered the world’s largest electric car manufacturer, will build its first European plant in Szeged, Hungary. This will be one of the most significant investments in Hungary’s history, leading to the creation of several thousand new jobs, announced Péter Szijjartó, Minister of Foreign Affairs and Trade of Hungary on Friday.

As the minister pointed out, one in every four electric cars sold this year in the world was produced by BYD. The company’s management conducted negotiations with Hungary’s National Investment Promotion Agency and ultimately decided to build their first plant in Europe in Szeged, Hungary. The minister highlighted that the project will be one of the largest investments in Hungarian economic history, resulting in the creation of several thousand new jobs. He underlined that BYD will manufacture electric cars at its new plant, which will be the sixth car factory in Hungary.

The Hungarian government provides financial support for the investment; however, the extent of this support will be disclosed only after approval by the European Commission. The minister emphasised that this further strengthens Hungary’s economic position, lays the foundations for long-term economic growth, and underscores the country’s role in the global electric car industry transition.

“This investment highlights Hungary’s leading role in the technological revolution. It has been a long time since Hungary has been at the forefront of such a fundamental global technological revolution, and it is happening now,” pointed out the minister explaining that the transition to electric vehicles in the automotive industry is unstoppable and this emerging industry will determine which countries emerge as winners and which ones as losers.

“This will depend on which nations can attract investments in this new era of the automotive industry,” he stated, emphasising that the presence of three premium German car brands—Audi, BMW, and Mercedes—in Hungary signifies that these companies have already factored in Hungary in their electromobility strategies.

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