Chinese electric vehicle giant BYD has announced plans to establish its European headquarters in Budapest, Hungary, in a blow to manufacturing in the UK.
BYD said the new manufacturing base, in addition to the research and development centre, would create thousands of high-value jobs.
The Xi'an-based manufacturer added that it would also support training and educational opportunities through partnerships with at least three Hungarian universities.
The new headquarters will be located in the 11th district of Budapest, marking BYD's fifth site in Hungary.
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BYD has chosen Hungary as its next European factory location
BYD
The company already operates a bus factory in Komárom and has additional facilities in Fót and Páty.
BYD is also developing a passenger-car manufacturing plant in Szeged, further expanding its Hungarian footprint.
The growing network of facilities demonstrates the Chinese manufacturer's increasing investment in the country as a strategic European base.
The R&D element of BYD's commitment will begin with two specific projects backed by significant investment. The first will focus on further integrating intelligence into modern mobility, whilst the second aims to develop advanced next-generation electrification technologies.
BYD Chairman Wang Chuanfu with Prime Minister of Hungary Viktor Orbán in a BYD Sealion 7
BYD
BYD Chairman Wang Chuanfu explained the strategic importance of the new headquarters, saying: "Establishing BYD's European headquarters in Hungary is a natural progression.
"As the core hub for BYD's European operations, the headquarters will focus on three key functions: sales and after-sales services, vehicle certification and testing, and localised vehicle design and feature development.
"Through these synergies, we aim to deepen integration with local markets, enhance our localisation capabilities and brand influence, and ensure sustainable growth in Europe."
Some had hoped that BYD, which is one of the UK's fastest-growing electric vehicle brands, would choose the UK as its base for manufacturing.
However, in 2023, BYD's European President, Michael Shu, said the brand wanted to build in a "stable country".
He added: "To open a factory is a decision for decades. Without Brexit, maybe. But after Brexit, we don't understand what happened."
So far this year, BYD has sold 11,782 new models in the UK, worth an impressive 1.68 per cent of the total market share. It is also just over 1,000 registrations behind global rival Tesla.
Commenting on the decision to choose Hungary as its next base, Prime Minister Viktor Orbán welcomed the announcement.
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The new commitment will include a European HQ and an R&D facility
BYD
He added: "Our goal is for foreign investors to bring development capacities to Hungary. Not only manufacturing, but also development capacities.
"Our idea has always been that the factories arrive first, then the factories' development centres arrive, and finally the research centres arrive. It doesn't work the other way around.
"First production, then development, and then research. That is why today's meeting and agreement are of great importance, because now BYD is opening a new era the company is also bringing its development centre to Hungary."
