China’s BYD makes Budapest regional HQ

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Chinese electric vehicle (EV) manufacturer BYD on 15 May signed an agreement with the Hungarian government to relocate its European headquarters to Budapest’s 11th District, alongside two major research and development projects.

The announcement marks the latest phase in BYD’s European expansion. Hungary’s government said the project will create around 2,000 high-value jobs. BYD’s new base will be located in the IP West office building in Ujbuda.

BYD CEO Wang Chuanfu said “Establishing BYD’s European headquarters in Hungary is a natural progression. As the core hub for BYD’s European operations, the headquarters will focus on three key functions: sales and after-sales services, vehicle certification and testing, and localised vehicle design and feature development.”

BYD to collaborate with Hungarian universities

The agreement signals Hungary’s increasing reliance on Chinese industrial partnerships as it seeks to expand its role in Europe’s EV supply chain.

Hungary’s state investment promotion agency HIPA confirmed that the government will provide around HUF 20bn (EUR 50mn) towards the EUR 245mn total investment. BYD is planning two research projects on AI-based driving systems and powertrain technology (the electric drive system that powers EVs), with help from Hungarian universities in building up local research capacity and the training of engineers.

The investment builds on Hungary’s strategy of attracting major industrial players with state incentives and regulatory support. BYD already operates a bus manufacturing facility in Komarom, north Hungary, and is building a passenger car plant in Szeged, south Hungary, in addition to logistics centres in Fot, north-east of Budapest, and Paty, west of Budapest.

Hungary’s government said the partnership will strengthen the country’s position in the growing EV sector. Hungarian Prime Minister Viktor Orban welcomed the announcement, proclaiming that “Hungary is entering a new era in industrial development”.

Projects to create high-skills jobs

HIPA said the new Budapest headquarters will consolidate BYD’s European presence and further integrate the company into Hungary’s industrial base. The agency added that 90% of the new jobs will be graduate level or higher, and that it plans to register at least half of the patents developed in Hungary.

The move positions BYD alongside established automotive manufacturers in Hungary. The company’s new centre in Ujbuda will be its fifth site in Hungary, complementing its existing bus factory in Komarom, facilities in Fot and Paty, and an electric car factory under construction in Szeged.

This expansion may intensify competition within Hungary’s automotive sector, traditionally dominated by German manufacturers such as Volkswagen and BMW.

Hungary minister blames probe on Ukraine stance

The European Commission (EC) launched an investigation in March into whether BYD received unfair state subsidies from China to support the construction of its Hungarian factory. If confirmed, BYD may be required to sell off assets, reduce its production capacity, repay the subsidy, and pay a fine to the EU for non-compliance.

Hungarian EU Affairs Minister Janos Boka said the country has not been informed of the EU’s probe “but is not surprised, as any investment in the country appears on the EC’s radar very quickly, given its geographical proximity to Ukraine”.