The Chinese electric vehicle manufacturer BYD plans to increase European electric bus and truck production by three times through a $94 million investment in a new Hungarian manufacturing facility.
The Hungarian Foreign Minister Peter Szijjarto revealed that BYD will construct a facility in Komarom which will increase yearly production to 1,250 units. The government will provide financial backing through a 3.1 billion forint grant to support this project.
The move demonstrates Prime Minister Viktor Orban’s approach to attract Chinese investments despite other EU member states working to decrease their dependence on Beijing. According to Szijjarto Hungary views East-West cooperation as an opportunity rather than a threat.
The company has established Hungary as its primary location for expanding its European operations. The company operates two separate electric car manufacturing facilities in southern Hungary while establishing its European R&D center within the country. The decision seems to support Budapest’s strong stance against EU tariffs imposed on Chinese EVs.
The Chinese-Hungarian relationship started with diplomatic ties when Orban became Prime Minister in 2010 and developed into manufacturing partnerships throughout the following decade. The new expansion solidifies Hungary’s position as a connection point between China and European markets while global trade tensions become more complex.
