China is set to build its first electric vehicle (EV) factory in the European Union, specifically in Hungary. This move, led by BYD, one of the world's leading EV manufacturers, marks a significant milestone as the first major BRIC investment in the EU automotive sector.
The planned factory will be located in Szeged, near Hungary's border with Serbia. This strategic location is part of Hungary's broader initiative to position itself as a global hub for EV production. The Hungarian government has actively courted foreign investment, offering financial incentives, tax breaks, and infrastructure development, particularly in cooperation with China through the Belt and Road Initiative.
BYD's entry into the European market comes at a time when the EU is imposing tariffs on Chinese EVs to protect local manufacturers from what it perceives as unfair competition due to Chinese government subsidies. Despite these challenges, Chinese automakers like BYD are motivated to establish a local presence to mitigate the costs and risks associated with exporting vehicles from China.
This move is part of China's broader strategy to expand its influence and economic footprint in Europe, which aligns with the objectives of BRICS to enhance global influence and economic cooperation among its members. The factory is expected to create thousands of jobs and significantly contribute to Hungary's economy, reinforcing its status as a leader in the technological revolution in the automotive industry.
In addition to BYD, other Chinese automakers are exploring similar opportunities across Europe. For example, Chery plans to start production in Spain, while Leapmotor is leveraging existing facilities in Poland. These investments highlight the growing footprint of Chinese automotive technology in Europe and the strategic importance of the region in the global EV market.