Chinese automaker BYD said on Wednesday it will build an electric vehicle factory in Hungary with production expected to begin within three years, making it the first Chinese company to manufacture passenger cars in Europe.
The company announced that it has signed a “tentative agreement” to build a factory in Szeged, southeastern Hungary.
BYD had announced its intention to build…
Chinese automaker BYD said on Wednesday it will build an electric vehicle factory in Hungary with production expected to begin within three years, making it the first Chinese company to manufacture passenger cars in Europe.
The company announced that it has signed a “tentative agreement” to build a factory in Szeged, southeastern Hungary.
BYD announced its intention to build the factory in December. The company already manufactures electric buses in Hungary.
Hungary is expected to become Europe's second-largest car battery manufacturer after Germany, and Chinese group CATL is also planning to open a factory there.
But China's electric vehicle exports have sparked tensions with the European Union, which last year launched an investigation into allegations of subsidies to Chinese manufacturers.
Advertisement – SCROLL TO CONTINUE
Hungarian Prime Minister Viktor Orbán has encouraged Chinese companies to set up in his country through tax breaks and infrastructure projects.
BYD, which started as a battery maker, overtook Tesla late last year to become the world's largest electric car maker. The company plans to build factories elsewhere in Europe and in Brazil.
tsz/mdz/nth/gv/js
