As the global EV race intensifies, Chinese automaker BYD is laying the groundwork for a significant European footprint. With a massive 300-hectare facility rising on the outskirts of Szeged, Hungary, the company is investing billions to cement its presence in the EU market.
The site, which is expected to produce up to 200,000 vehicles annually, has been rapidly developing since construction began last year. Satellite images from Planet Labs, shared with Business Insider, provide a striking visual narrative of its progress, from empty farmland in December 2023 to a growing industrial footprint by April 2025.
Hungarian officials confirmed that this facility’s first BYD electric vehicle is slated to roll off the assembly line in the latter half of 2025. With an estimated investment of 4 billion euros (roughly $4.5 billion), this plant marks BYD’s first major manufacturing hub in Europe. But it won’t be the last—plans are already in motion for a second factory in Turkey, and a third European location is reportedly under consideration.
BYD’s expansion comes on the heels of its domestic success in China, the world’s most cutthroat EV market. Now, the company is leveraging that momentum to go global, having already set export records in early 2025. However, with the U.S. market largely off-limits due to steep tariffs, Europe has become the battleground for BYD’s international ambitions.
And it’s already paying off. While Tesla struggles—its European sales have plummeted by 37% in the first quarter of 2025—BYD’s sales on the continent have surged by nearly 300%. Tesla’s decline has been exacerbated by political controversies surrounding Elon Musk, including his open support for Germany’s far-right AfD party.
Backing BYD’s rise is none other than Warren Buffett, whose endorsement gives the company added credibility in Western markets. But the EV maker isn’t the only Chinese player betting on Hungary. CATL, the world’s largest EV battery producer, is also building a $7.6 billion facility in the country, underlining Hungary’s growing appeal as a gateway to the EU.
However, not everyone is welcoming this influx of Chinese investment with open arms. The European Union has launched an investigation into whether BYD’s Hungarian plant may have benefited from unfair subsidies—a probe that underscores growing geopolitical tensions over industrial policy and competition.
Still, the momentum is hard to ignore. As the Szeged site nears completion and production looms on the horizon, BYD’s European adventure is just beginning. If early indicators hole, the company could soon be more than just a competitor—it might become a dominant force reshaping the continent’s automotive landscape.
