Leading Chinese electric vehicle (EV) manufacturer BYD said on Thursday that it will open its first European business headquarters as well as a new research and development center in Budapest, Hungary.
With an investment of almost 250 million euros, the BYD project will create 2,000 jobs, mostly for university-trained engineers. It also includes strategic partnerships with Hungarian universities and vocational institutions, aiming to link research and development efforts with local talent.
The factory is set to begin operations by October in Szeged, southern Hungary, where steel frames have already risen to form the skeleton of the plant. Once completed, it will produce EVs for the entire continent.
During a joint press conference on Thursday, both sides expressed optimism about their collaboration as BYD established its presence in the heart of the EU.
"The cars of the future will also be manufactured in the country," said Viktor Orban, Prime Minister of Hungary.
"BYD can consider itself lucky for participating in the economic and social development of Hungary. The world can be witness to the endless possibilities provided by the Chinese-Hungarian cooperation," said Wang Chuanfu, CEO of BYD.
Hungary's automobile industry took off in the 1990s when major Western automakers established factories, attracted by the country's skilled workforce and low production costs. Since then, the country has evolved into a key vehicle assembly hub.
However, BYD's arrival signifies a new era -- Hungary will not only manufacture the future of cars but also play a crucial role in shaping it, according to industry insiders.
"I think it's a necessary step [for BYD] to get more into the country and get more involved in the European market," said Tibor Antaloczy, an automotive analyst.
Chinese EV giant to open European headquarters in Budapest
Chinese EV giant to open European headquarters in Budapest
