BYD, the leading Chinese electric vehicle manufacturer, announced plans to establish its first European assembly plant in Hungary, signaling its global expansion strategy. The facility in Szeged will create local jobs and foster technological collaboration between China and Hungary. Analysts anticipate the plant to produce 200,000 cars annually within two to three years, reducing logistics and tariff costs. European and U.S. automakers are wary of Chinese competition, especially as Chinese companies like BYD and Nio leverage government support to invest in technology and expand globally. European lawmakers are scrutinizing potential subsidies received by Chinese automakers, which could lead to tariffs from the EU. In response to the competitive landscape, European automakers like Volkswagen are increasing their investments in China and exploring partnerships for low-cost electric vehicles. Hungary’s Prime Minister Viktor Orban has shown openness to Chinese investment, but previous Chinese projects in Hungary have faced challenges related to pollution, water supply, and labor concerns.

https://www.nytimes.com/2023/12/22/business/byd-china-hungary.html