EV manufacturer brings new economic hope to southern Hungary

The city of Szeged, located in southern Hungary, is gearing up for a major development as China's leading electric vehicle manufacturer, BYD, plans to establish its first European production facility for electric cars in the region.

‌The arrival of the world's largest electric automaker is expected to have a significant positive impact on the local Hungarian economy. Antal Józeph Mézáros, CEO of Csomiep construction company, emphasizes the importance of this project, stating: "Just because of this project, this area will be on the map and that's very important."

Mézáros, who oversees road construction near BYD's upcoming manufacturing plant, anticipates a surge in demand for infrastructure projects as the factory's construction commences, potentially leading to increased employment opportunities. #

"Last year, we employed 123 people," he tells CGTN. "If we get the contract to build roads, we will be hiring more."

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BYD's manufacturing plant is set to cover approximately three square kilometers and is projected to generate around 3,000 jobs in Szeged and the surrounding areas. According to Hungary's government, this initiative represents one of the most substantial economic investments in the country's recent history.

‌Attila Kőkúti, President of the Chamber of Commerce and Industry in Czongrád County, highlights the significance of having a multinational company like BYD in the city, as it initiates a multiplying effect on the local economy. Kőkúti points out that while Szeged's primary industries are food processing and agriculture, the establishment of BYD's manufacturing plant is expected to have a positive ripple effect on other sectors, including tourism, retail and services, thereby enhancing Szeged's appeal to visitors and bolstering its overall economic prospects.

‌BYD's impressive sales figures indicate the company's dominance in the global electric vehicle market, surpassing even Tesla. Analysts predict that the new manufacturing plant in Szeged will position BYD as a major player in the European electric vehicle industry by the end of the decade.

‌Hungary's involvement in China's Belt and Road Initiative has made it an attractive destination for car and battery factories. ‌BYD's strategic location near the Belgrade-Budapest railway line, a joint venture between Chinese and local companies, is expected to stimulate new industries in the region. 

David Morris, Senior Fellow at the Center for China and Globalization at Beijing Foreign Studies University, underlines the significance of this project for Hungary, both in terms of job creation and positioning the country at the forefront of the transition to electric vehicles, noting: "For this factory to be there on that rail line right beside the Serbian border, it shows that this railway that is being developed will stimulate new industry."

‌The construction of BYD's plant will occur in multiple phases over three years, signaling Hungary's commitment to becoming a vital European hub for battery and electric vehicle manufacturers by expediting infrastructure projects that support this goal.

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