BYD Sets to Challenge Tesla with New EV Plant in Hungary

SZEGED, Hungary — Chinese electric vehicle maker BYD is making its mark in Europe with the construction of a new factory in Szeged. This facility will begin production by the end of 2025, aiming to produce 150,000 all-electric sedans annually, with plans to double that by 2030.

Stella Li, BYD’s executive vice president, attended a signing ceremony for a supply deal in Vienna, revealing the company’s ambitious goal to boost vehicle numbers significantly. In the first half of 2025, BYD sold nearly 55,000 cars in Europe, marking a tripling of sales from the previous year.

“What they’re doing now is seducing the customer, and later they’ll think about the profits,” said Felipe Munoz, an auto analyst for JATO Dynamics. The affordable models offered by BYD have drawn European consumer interest.

BYD’s notable progress comes as it seeks to capitalize on the growing market for electric vehicles, where it faces competition from major manufacturers like Tesla and Volkswagen. With electric vehicles accounting for over 70% of production in China, BYD’s rapid expansion aims to catch up in Europe.

“If we can be successful here, we can be successful in any other country,” Li stated. The Szeged factory, which will create up to 10,000 jobs, is seen as a key part of this strategy, as it will also help the company avoid tariffs imposed by the European Union.

However, concerns about sustainability loom. Analysts caution that BYD’s rapid expansion, supported by extensive government subsidies, might not be sustainable in the long run, with potential financial implications.

As BYD positions itself strongly in the European market, it hopes to not only increase sales but also reshape the industry’s landscape amid fierce competition.