BYD has taken a significant step forward in establishing its first passenger EV production facility in Europe by finalizing a preliminary sales agreement for the chosen land in Hungary. Just two months after announcing Hungary as the preferred location, BYD is accelerating its plans to set up operations in the region.
Entering 2024 as the global leader in electric vehicle (EV) volume, surpassing industry giant Tesla, BYD is gearing up to expand its footprint in Europe. Having entered the European market four years ago, BYD continues to introduce new EV models to compete with established players in the EU automotive landscape.
The journey toward European production began in 2022 when BYD initiated discussions with potential production partners. Official plans were unveiled in November 2023, pinpointing Hungary as the site for the first Europe-built BYD EVs.
According to BYD's Weibo page, the company formally inked a preliminary sales and purchase agreement for the Hungarian land on January 30, 2024, in collaboration with the Szeged Municipal Government. The signing ceremony witnessed the presence of BYD Chairman and President Wang Chuanfu and Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó.
The upcoming BYD facility in Hungary is made possible through subsidies provided by the local government, a detail revealed in December. The extent of these investments is yet to be disclosed and awaits official approval from the European Commission.
Pending approval, BYD's inaugural production footprint for passenger EVs holds significant potential in establishing a stronghold in the European EV market. Once operational, the facility is projected to manufacture up to 200,000 EVs annually through a phased expansion program.
In the latest update, BYD anticipates the Hungary facility to be operational within three years. This facility will complement an existing BYD facility in the country, which currently produces electric buses. As BYD solidifies its presence in Europe, the company is poised to play a pivotal role in shaping the future of electric mobility on the continent.