Chinese EV automaker BYD to build car factory in Hungary

HONG KONG - China's top electric automaker BYD will build a car factory in Hungary as it pushes forward with plans for expansion into Europe despite growing concerns around fair competition.

BYD Europe said the factory in the southern city of Szeged would mark "a significant step toward green mobility in Europe" as it made the announcement on X, formerly Twitter.

Earlier this year, the firm became the first global manufacturer to pass the five million milestone in electric vehicle (EV) production, crowning itself "the world's leading manufacturer of new energy vehicles and power batteries".

The growing success of Chinese EV firms in foreign markets has started to draw scrutiny, however. 

In China, the EV sector has benefited from decades of subsidies issued by Beijing in related tech fields.

The European Union this year announced an investigation into these subsidies, citing unfair competition.

But Hungarian Prime Minister Viktor Orban's longstanding policy to "look East" has seen Asian businesses offered lucrative tax breaks, infrastructure and job creation subsidies to lure them to his country.

The factory "will be one of the largest investments in the history of the Hungarian economy", Foreign Minister Peter Szijjarto said in a statement, without giving a specific figure. 

BYD already has operations in Hungary, including an electric bus factory.