Hungarian Investment Promotion Agency

Mr. István Joó emphasized that the Chinese company has been building its first European car factory in Szeged since February 2024, and on some buildings, the roof structures are already complete, which indicates an exceptionally fast construction pace by European standards.

Speaking to Trend FM the HIPA CEO added that this is not BYD’s first project in Hungary. The company has been producing electric buses in Komárom for years, and the trust developed through a long and successful cooperation was essential in winning the latest investment.

The world’s largest electric vehicle manufacturer will set up its European business and R&D headquarters in Budapest. The company has purchased an office building in the 11th district of the Hungarian capital and will soon begin recruiting staff. The investment will create at least 2.000 jobs, and according to BYD’s commitment, these positions will be filled primarily by local employees.

The new center in Újbuda will oversee BYD’s European dealership network and marketing activities, among others, which will require many highly skilled professionals. The R&D center will start with two key projects, one focused on increasing the efficiency of electric drivetrains, and the other on developing AI-based driver assistance systems.

This is a result of great economic significance and a major source of pride for HIPA

– Mr. István Joó emphasized.

The Government Commissioner responsible for investment promotion and the implementation of strategic projects said that in addition to the relationship built upon the foundation of trust, Hungary’s investor-friendly business environment and skilled workforce pipeline also played a significant role in BYD’s renewed confidence in the country.

The Hungarian government is also supporting the investment financially, but

any country would have been happy to offer funding to secure BYD’s European business and R&D center, because such an investment generates substantial returns.

The R&D projects, with a combined value of HUF 100 billion, are by far the largest in HIPA’s history, about three times the size of the previous record holder, the recently announced investment by U.S.-based Diligent Corporation, which provides enterprise software solutions.

It is also significant that BYD has committed to filing half of the patents developed at the new center in Hungary. The company also pledged to cooperate with at least three Hungarian universities and involve students from doctoral, master’s, and dual vocational training programs in its projects.

These milestones mark a new dimension in the history of R&D investments facilitated by HIPA, Mr. István Joó underscored.

The presence of one of the global leaders in sustainable mobility is further expanding in Hungary through this investment, which follows more than a year of negotiations. The project will involve highly qualified roles in business services and R&D activities.

This is exactly HIPA’s strategy.

We have always said that manufacturing is the first step,  whether in automotive or other sectors, and it provides the foundation to move towards the highest value-added activities

 – Mr. István Joó said.