Prior to this, BYD had officially signed a land pre-purchase agreement with the Szeged Municipal Government in Hungary for BYD’s Hungarian passenger car factory, marking a substantial breakthrough in BYD’s localization process in Europe.
So why did BYD finally choose Szeged, Hungary? In fact, when announcing the factory plan, BYD mentioned that Hungary is located in the heart of the European continent and is an important transportation hub in Europe. The Hungarian automobile industry has a long history of development, has developed infrastructure and a mature automobile industry foundation, which provides BYD with a strong presence in the industry. The local construction of factories provides good opportunities.
In addition, under the leadership of current Prime Minister Orban, Hungary has become one of Europe’s leading electric vehicle industry centers. Over the past five years, Hungary has received about 20 billion euros in electric vehicle-related investment, including 7.3 billion euros invested by CATL to build a battery factory in the eastern city of Debrecen. Relevant data shows that by 2030, CATL’s 100GWh production capacity will elevate Hungary’s battery production to fourth in the world, second only to China, the United States and Germany.
According to data from the Hungarian Economic Development Ministry, investment from Asian countries now accounts for 34% of foreign direct investment, compared with less than 10% before 2010. This is due to the Hungarian government’s support for foreign companies. (especially Chinese companies) have an extremely friendly and open attitude and efficient and flexible operation methods.
As for Szeged, it is the fourth largest city in Hungary, the capital of Csongrad Region, and the central city, economic and cultural center of southeastern Hungary. The city is a railway, river and port hub, and BYD’s new factory is expected to be close to the Belgrade-Budapest railway line jointly built by Chinese and local companies, with convenient transportation. Szeged’s light industry is developed, including cotton textiles, food, glass, rubber, clothing, furniture, metal processing, shipbuilding and other industries. There is oil and natural gas in the suburbs, and corresponding processing industries have been developed.
BYD likes Szeged for the following reasons:
• Strategic location: Szeged is located in southeastern Hungary, close to Slovakia and Romania, and is the gateway between the European interior and the Mediterranean.
• Convenient transportation: As Hungary’s main transportation hub, Szeged has a well-developed road, rail and air transportation network, which easily connects to cities across Europe.
• Strong economy: Szeged is an important economic center in Hungary, with a large number of manufacturing, service and business activities. Many international companies and investors choose to set up their headquarters or branches here.
• Numerous educational and scientific research institutions: Szeged has many famous universities, such as the University of Szeged, Szeged University of Technology and Szeged Academy of Fine Arts, attracting a large number of domestic and foreign students and researchers. These institutions bring a wealth of talent to the city.
Although other brands such as Weilai and Great Wall Motors have also set their sights on Hungary and are expected to establish factories in the future, they have not yet formulated local manufacturing plans. Therefore, BYD’s factory will become the first large-scale automobile factory established by a new Chinese brand in Europe. We look forward to BYD opening up a new market in Europe!
Post time: Mar-13-2024