Chinese EV maker BYD is preparing to launch mass production at its new factory in Szeged, Hungary, in the final quarter of 2026, Executive Vice President Stella Li reaffirmed in an interview with Bloomberg TV, placing the Hungarian investment at the centre of the company’s ambitious European expansion.
The rapidly growing manufacturer is seeking to transform itself from a Chinese exporter into a major Europe-based automotive producer, establishing factories and recruiting tens of thousands of workers across the continent.
Speaking to Bloomberg TV at the Paris Motor Show on Monday, 12 October, Li said BYD was in the final stages of preparing its Szeged facility for mass production. The plant, the company’s first European passenger-car factory, was originally expected to begin manufacturing the Dolphin Surf model by the end of 2025, but the launch has been delayed.
‘BYD’s commitment in Europe is very deep, and it is long-term’
Despite that, Hungary remains BYD’s immediate priority, Li said earlier this year, when the company announced that it had suspended its planned $1 billion factory in Türkiye. The Chinese manufacturer is now concentrating on establishing production within the European Union before proceeding with additional facilities.
Li also unveiled ambitious employment targets, announcing that BYD intends to increase its European workforce to more than 40,000 by 2030, compared with the 10,000 employees it expects to surpass shortly. Recruitment will target specialists from the automotive industry and other sectors, including workers laid off by struggling traditional European manufacturers. ‘BYD’s commitment in Europe is very deep, and it is long-term,’ Li declared.
Beyond Hungary, the company is considering at least two additional European manufacturing facilities, with France and Spain among the leading candidates. Li separately told French broadcaster BFM Business that competitive energy prices made France particularly attractive, although no final investment decisions have been announced.
The expansion follows exceptional growth in BYD’s European business. The company’s regional vehicle sales surged by 270 per cent in 2025 to nearly 188,000 units, followed by another 144 per cent increase during the first five months of 2026.
Establishing a European manufacturing network is a logical strategy given the growing regulatory scrutiny facing Chinese automotive imports in the EU. The bloc has imposed additional tariffs on Chinese-made electric vehicles and recently agreed on restrictions on Chinese hybrid imports, while preparing further restrictions and regulatory adjustments affecting the sector.
‘The Chinese manufacturer is now concentrating on establishing production within the European Union’
The Hungarian plant is in an even more precarious position than BYD’s other European investments. Former foreign minister Péter Szijjártó, who helped negotiate the Szeged project before joining BYD as an executive in July, was recently questioned by parliament’s National Security Committee over possible conflicts of interest and security risks. Szijjártó denied that BYD had received unusually favourable treatment.
Meanwhile, Péter Magyar’s government has launched a broader regulatory crackdown on the EV and battery industries, introducing stricter inspections and announcing substantially higher environmental penalties. BYD itself is contesting a HUF 10 million (around $31,000) fine imposed for failing to conduct required soil testing and notify authorities before removing soil from the Szeged site.
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