Build Your Dreams (BYD), China’s main EV manufacturer, has been making quite a noise lately, and that’s because BYD has become a leading contender in Europe. BYD has set its sights officially on the European market and now boasts a production hub in Hungary. BYD plans to produce approximately 200,000 vehicles annually, posing a direct challenge to rival Tesla, which is also competing for the limelight in the EV market. Driven by its motives for European expansion, BYD has turned its attention to Hungary, and the Chinese automaker’s landing in Hungary could mean a shift in the European automotive landscape as we know it.
The way towards building a European empire for BYD
Having established its headquarters in Europe with its manufacturing center being located in Szeged, Hungary, BYD is working towards producing about 200,000 EVs yearly. However, the Hungary headquarters is not merely a factory, but a logistics hub, production base, and R&D center expected to secure BYD’s place in the European market.
All in all, BYD made a great move by choosing Hungary as its base. This Central European nation has secured its reputation as a manufacturing hotspot. Being host to other leading brands like Mercedes-Benz, BMW, and Audi, choosing Hungary was a rather strategic move. BYD can effortlessly distribute EVs across the EU without experiencing any delays or hefty logistics costs.
The first vehicles will roll off the line in 2026, and while BYD intends to enjoy much success with the vehicle roll off, this vehicle roll off will also create jobs for many. Offering its high-tech expertise to the region, BYD is surely building dreams in Hungary too.
Tesla is under threat from a Chinese giant making leaps in EV technology
This Hungarian expansion for BYD comes at an opportune time for the Chinese giant, but at the worst time for EV market contender, Tesla. Tesla’s sales in the European market, especially the UK and Germany, have hit an all-time low. Although other Chinese-created EV exports fell by 6%, BYD sales have been increasing. BYD has been labelled the top-selling car brand in Singapore for the first quarter of 2025.
BYD is no longer just taking China by storm but is going global. With a Hungarian base, BYD will be able to avoid EU tariffs on imported Chinese EVs whilst still meeting Europe’s demand for EVs.
BYD Hungary’s vision
Thus far, BYD has not stipulated which models will be produced at this European headquarters. However, it is speculated that electric hatchbacks, sedans, and compact SUVs will be produced to be in direct competition with Tesla’s Model 3 and Model Y.
BYD’s plans are not restricted to Hungary, but far beyond. The company has decided that it would sell approximately 50% of its vehicles outside of China. BYD is as such expanding its operations in Southeast Asia, Africa, and Latin America. Another upcoming project that has been slightly delayed but not scrapped is that of a Brazilian factory project with operations expected to begin by the end of 2026.
BYD is proving to Tesla that it can become a global contender in the EV market as well.
A change in Europe’s electric automotive industry
BYD moving into Hungary is a strategic move towards shifting the automotive industry in Europe, and it seems that China has initiated a mass-scale invasion.
While Tesla seems to be unable to live up to its promises of late with the cancellation of the Cybertruck project, BYD is proving to be a noisy neighbor that just keeps competing with and posing a threat to Elon Musk’s well-known EV manufacturer, Tesla. All that is left to be seen is which EV automaker reigns supreme. Nevertheless, the European EV market has gotten much more interesting.
