BYD, the Chinese electric-vehicle manufacturer, is set to establish its inaugural European car factory in Hungary. The move underscores BYD’s commitment to expanding its presence in the global automotive landscape. The forthcoming facility, located in the southern city of Szeged, is slated to manufacture electric vehicles (EVs) and plug-in hybrids tailored for the European market while simultaneously generating a substantial number of job opportunities.

The selection of Szeged as the factory site follows a year of extensive negotiations with European countries, ranging from Germany to France, all vying to secure the investment and employment opportunities associated with hosting an automotive manufacturing plant. BYD’s decision is poised to contribute significantly to the local economies and workforce of the chosen region.

BYD has set ambitious goals in the electric vehicle (EV) market, specifically aiming for a share of up to 10 percent in the German EV market in the medium term, along with targeting a 5 percent share of total registrations across Europe.

BYD’s ambition doesn’t match the current reality, the automaker successfully sold 3,438 cars in Germany during this period, translating to a 0.1 percent market share. The current market share is small, but BYD expects to make giant leaps to expand its footprint in the European EV market.

The coming years will likely witness BYD’s concerted efforts to gain a more substantial foothold and achieve the targeted market shares in Germany and Europe as a whole.

Hungary has emerged as a prominent destination for the electric vehicle (EV) industry, over the past five years, the country has attracted an estimated 20 billion euros ($22 billion) in investments dedicated to the EV sector.

Notably, this includes the construction of a significant 7.3 billion-euro battery plant in the eastern city of Debrecen, a project spearheaded by China’s Contemporary Amperex Technology.