In the dynamic global landscape of the automotive and technology industries, the partnership between China and Hungary has become increasingly robust, and this evolving alliance is illustrated by recent strategic initiatives in the automotive sector.
In January this year, Chinese automaker BYD officially signed a land pre-purchase agreement with the government of the Hungarian city of Szekszard, marking a significant step in its localization efforts in Europe. The following month, the Chinese automaker delivered its first batch of ATTO 3 electric cars in Hungary, broadening its market access in the Central and Eastern European market.
Located in the heart of Europe, Hungary has a long-standing history of automotive development, supported by well-developed infrastructure and a mature industrial base. Hungary is a global innovation leader, with a wealth of patents and technologies, and was the first European country to embrace the Belt and Road Initiative. In 2016, the Hungarian government launched an electric vehicle development plan aimed at increasing electric vehicle production.
BYD's planned manufacturing facility in Szeged, in southeast Hungary, will mark a significant milestone as the first of its kind in Europe for a Chinese automaker. Meanwhile, Hungary is keen to put itself in the fast lane of electric vehicle (EV) manufacturing.
BYD is a Chinese automotive behemoth but a comparatively fresh entrant on the European scene. It has ambitious plans to capture 10 percent of Europe's Electric Vehicle market by the end of the decade and sees Hungary as its launching pad.
BYD's forthcoming Szeged plant is slated to commence vehicle production next year, marking a significant step in familiarizing European consumers with the brand.
A Hungarian official said that the investment, which came along with the rise of China's EV industry, has been an opportunity for Hungary. The country has become a hub for electric car and battery manufacturing by giving space to Chinese companies.
