acf domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/ecg/ecgassociationdev/wp-includes/functions.php on line 6121Automotive News Europe — 2024-11-15
Automotive Industry
Car plants under construction by BYD and BMW are expected to start production in Hungary in the second half of 2025, which could help boost the country’s economy, Prime Minister Viktor Orban’s chief of staff said.
BMW’s factory in Debrecen will build its new generation of long-range, fast-charging battery-electric cars on the Neue Klasse platform, while BYD will open its first European passenger car factory in Szeged. BYD will build full-electric vehicles and plug-in hybrids for European customers.
BYD began selling imported EVs in Europe in 2022 and has opened 250 stores in 19 European countries.
Production in Europe will help the automaker avoid a significant rise in import tariffs that the European Union is levying on Chinese automakers. BYD must pay a 17% levy on full-electric cars it exports to Europe from China on top of an existing 10% duty.
Hungary has become an important trade and investment partner for China, in contrast with some other EU nations that are considering becoming less dependent on the world’s second-largest economy.
In Europe, Germany is Hungary’s main trading partner with several car plants already operating in the country. BMW’s premium rivals Audi and Mercedes-Benz build cars in Hungary.
Hungary is counting on BMW, BYD to help boost its economy
Prime Minister Orban has also spearheaded a drive to bring Chinese EV and battery manufacturing plants to Hungary.
However, the country’s economy dipped into a technical recession in the third quarter as it contracted by 0.7% from the previous three months, weighed down by weakness in farming, industry and construction.
This is a problem for the Hungarian leader as he seeks to revive the economy ahead of a 2026 national election where he is facing an unprecedented challenge from a new opposition party.
“The optimism for next year’s economic policy is supported by current developments as the new plants of BYD and BMW are going to start production in the second half of next year,” his chief of staff Gergely Gulyas told a briefing.
CATL, one of the biggest Chinese investors in Hungary, is building a huge €7.3 bn battery plant in Debrecen that will supply European automakers including BMW and Mercedes. It will have an output capacity of 100 gigawatt hours, enough to power more than 1 m cars.
The Hungarian government expects the country’s economy to grow by 3.4% in 2025.