Chinese electric vehicle giant BYD will establish its European headquarters and a significant research and development hub in Budapest. The investment is part of a €248 million expansion into Hungary. It underlines the company’s growth ambitions and the Orban government’s close ties with Beijing.
Prime Minister Viktor Orbán and BYD’s chairman and chief executive, Wang Chuanfu, announced at a joint press conference in the Hungarian capital. The new center is expected to create around 2,000 jobs. It will serve as a regional base for sales, after-sales service, testing, certification, and model development tailored to the European market.
European bridgehead
“For Hungary to remain competitive, we must be part of the technological transition,” Orbán said. “This investment proves our industrial strategy is working.” The prime minister has long advocated for deeper engagement with China, positioning Hungary as a European bridgehead for Chinese capital and infrastructure under the Belt and Road Initiative.
Wang described the Budapest headquarters as a “natural step forward” for the company’s European strategy, saying it would play a central role in the firm’s long-term development on the continent.
No doubt that securing its footprint in Europe is a logical step for BYD, as the carmaker is growing rapidly into one of the world’s most formidable carmakers. In 2024, it sold more than 4.27 million electric vehicles globally, overtaking Tesla as the world’s top EV brand. European expansion is now a key priority for the firm, which sold over 11,000 cars across Europe in April alone.
Hungary’s Foreign Minister, Péter Szijjártó, signed the investment agreement with BYD vice-president Stella Li. The contract deepens an existing relationship: BYD has operated a factory assembling electric buses in Komárom since 2016 and maintains other facilities in Fót and Páty.
A full-scale car plant is under construction in Szeged and is expected to begin production by late 2025. This will make BYD the first Chinese company to assemble passenger vehicles in Europe. Another Chinese manufacturer, Chery, plans to kickstart its car-building efforts in Spain around the same time.
A willing partner
Orbán’s government has consistently emphasised “pragmatic connectivity” in its economic policies, courting Chinese capital even as other EU member states adopt a more cautious stance. Beijing, in turn, has found a willing partner in Budapest, which has championed projects such as the China-funded Budapest–Belgrade railway.
Though Orbán always spoke out against the punitive tariffs installed by the European Union, upon proof of unfair state subsidies for Chinese carmakers, his country seems to benefit the most from delocalized production. “This is not just about jobs or cars,” Orbán said. “It’s about placing Hungary at the center of Europe’s electric vehicle future.”
With five sites across the country and further expansion on the horizon, BYD’s presence in Hungary may soon represent one of the most apparent examples of Chinese industrial influence within the EU.
