Chinese automaker BYD is set to triple its electric bus and truck production in Europe with a new $94 million facility in Komarom, Hungary, a move that strengthens Hungary’s position as a hub for Chinese electric vehicle (EV) investment. Announced on June 27, 2025, by Hungarian Foreign Minister Peter Szijjarto, the plant will increase BYD’s annual output to 1,250 vehicles, supported by a government grant of 3.1 billion forints ($9.1 million), reports Reuters.

Strategic Expansion in Europe

BYD’s investment of 32 billion forints ($94 million) in northern Hungary aligns with its broader European strategy, which includes an electric car factory in southern Hungary and plans for a regional research and development laboratory. The Komarom facility will focus on electric buses and trucks, catering to Europe’s growing demand for sustainable public transportation. This expansion follows Hungary’s condemnation of EU tariffs on Chinese EVs, positioning the country as a favorable destination for Chinese manufacturers.

Szijjarto emphasized Hungary’s open stance on global trade: “We Hungarians do not consider East-West cooperation a threat, but rather an opportunity, a big opportunity.” This approach has attracted significant Chinese investment, with Hungary securing nearly a third of Chinese inward investment in Europe in 2024, totaling 5.5 trillion forints ($16 billion) across 64 projects.

Byd Boosts Electric Bus Production With $94M Hungary Plant

Technical and Economic Impacts

The new plant will triple BYD’s production capacity from approximately 400 to 1,250 vehicles annually, enabling the company to meet rising demand for electric buses, which offer zero-emission solutions for urban transit. These vehicles typically feature lithium-ion batteries with ranges of 150–250 miles per charge, depending on the model, and can reduce operating costs by up to 60% compared to diesel buses, based on industry benchmarks. The inclusion of a research lab suggests BYD aims to innovate in battery efficiency and vehicle design tailored to European markets.

Economically, the project is expected to create jobs in Komarom, a town 37 miles northwest of Budapest, while reinforcing Hungary’s role as a manufacturing hub. The government’s $9.1 million grant underscores its commitment to fostering EV production, which could attract further investment from Chinese firms. However, Hungary’s deepening ties with China may raise concerns among EU nations advocating for reduced reliance on Chinese supply chains.

Industry Trends and Regulatory Context

BYD’s expansion reflects a broader trend of Chinese EV makers targeting Europe to bypass trade barriers and capitalize on the continent’s push for net-zero emissions by 2050. Hungary, under Prime Minister Viktor Orban, has actively courted Chinese investment since 2010, with EV and battery production becoming a cornerstone of its industrial strategy. The country’s landlocked geography makes it an ideal logistics hub, with proximity to major European markets.

Regulatory dynamics, such as EU tariffs on Chinese EVs, pose challenges, but Hungary’s pro-China stance mitigates these for BYD. The company’s investment could pressure European competitors like Solaris and MAN to accelerate their electric bus programs, intensifying competition in a market projected to grow 12% annually through 2030.

Blick in die Zukunft

BYD’s $94 million plant in Hungary marks a significant step in its European ambitions, enhancing electric bus availability and supporting sustainable transport goals. For EV enthusiasts and fleet operators, this means access to cost-effective, high-performance vehicles. However, the project highlights Hungary’s balancing act between EU membership and Chinese partnerships, a dynamic that will shape the region’s EV landscape.

Photos courtesy of Zoltan Novacs / BYD / X