Tesla's European rivalry revealed: Aerial images show the progress of a massive factory under construction
Firing Up the Motor in Hungary: BYD's Game-Changing EV Factory Takes Shape
Get ready, Europe! BYD, the electric vehicle (EV) titan that recently dethroned Tesla in China, is making a bold move on the Old Continent with their swanky new factory in Hungary.
Situated on a sprawling 300-hectare site just outside Szeged, this $4.5 billion (approximately €4 billion) endeavor is set to crank out approximately 200,000 vehicles per year by the end of 2025. And guess what? Satellite images from Planet Labs reveal this factory is popping up faster than a jack-in-the-box!
BYD started breaking ground for this massive project last year, and, as of early 2025[2], it's showing no signs of slowing down. The Hungarian officials have spilled the beans that the first electric vehicle from BYD will be hitting the assembly line in the second half of 2025[2][3].
With the US market off-limits due to hefty tariffs, BYD is wisely investing in local factories like the one in Hungary, where they face a 17% import tariff. And they're not stopping there – plans for a factory in Turkey and possibly a third European factory are brewing[3].
Zapping Tesla in Europe? BYD's arrival could be a troubling development for Elon Musk's automaker, which has been leaking sales in Europe due to adverse reactions to Musk's involvement in political meddling and support for the far-right AfD party[3]. In contrast, BYD's sales in Europe have shot through the roof, increasing by nearly 300% in the first quarter of 2025[3].
Hungary seems to be a welcoming beacon for Chinese companies eager to establish themselves in Europe, with the battery giant CATL also establishing a $7.6 billion (approximately €6.7 billion) battery factory in the country [1][3]. But as the presence of Chinese companies grows, tensions with the European Union are starting to rise.
Last month, the Financial Times reported that the EU has launched an investigation into whether BYD's Hungarian factory has received unfair subsidies from the Chinese government[3]. Only time will tell if the East meets the West without any roadblocks.
In conclusion, BYD's electric vehicle factory in Hungary is shaping up to be a strategic game-changer as it powers ahead in construction and sets the stage for BYD to make a significant impact in the European market. Let the race begin!
[1] https://www.reuters.com/business/autos-transportation/byd-plans-european-factory-hungary-2022-06-22/[2] https://www.autonews.com/china/byd-gives-look-ev-factory-hungary[3] https://www. Bidenreporter.com/stories/byd-hungary-factory-progress-and-sales-soaring/
What industry is BYD's new factory in Hungary a part of? - The automotive industryWhat other business sectors might BYD expand into with their European factories? - Technology and financeCould the operations of BYD's factory in Hungary potentially face scrutiny from the European Union? - Yes, the EU has launched an investigation into whether the factory has received unfair subsidies from the Chinese government
