Giant European factory of BYD under construction, revealed by satellite imagery.
Rewritten Article:
BYD's monster new vehicle factory in Hungary is cooking up a storm, as per satellite imagery.
After dethroning Tesla in China, the electricity-powered vehicle titan of Elon Musk is eyeing opportune troubles in Europe.
The hefty $4.5 billion (approximately 4 billion euros) factory will churn out around 200,000 motor vehicles annually from late 2025.
BYD is constructing a gargantuan factory in Hungary to outshine Elon Musk's Tesla in Europe.
The 300-hectare plot, nestled on the outskirts of Szeged, Hungary, is anticipated to reach a maximum capacity of around 200,000 vehicles per year. Images from Planet Labs reveal the factory's swift emergence.
The factory's construction began last year. Hungarian authorities confirmed last November that the first electric vehicle from BYD will stomp off the assembly line during the second half of 2025.
This 4 billion euro investment is the subsequent stride in BYD's mission for European supremacy.
After battering the fiercely competitive electric vehicle scene in China, BYD is now setting its sights overseas and exported a record number of electric vehicles and hybrids during the first quarter of 2025.
Tariffs propel local production
BYD is locked out of the US market due to high tariffs. In Europe, it faces a 17% import tax, spurring the company to invest in local factories like the one in Hungary.
The Chinese automaker also plans to initiate construction on a factory in Turkey in the coming years. Bigwigs from the company backed by Warren Buffett hinted that proposals for a third European factory are under consideration.
This poses a substantial challenge to Tesla, which operates a Gigafactory in Germany and deems Europe its third-largest market.
Elon Musk's auto group peddled 327,000 vehicles in Europe last year, but sales plummeted in 2025. Triggered by vigorous responses to Musk's busying in European politics and his support for the extreme-right AfD.
Tesla's European sales dropped by 37% in the initial three months of the year, while BYD's shot up by nearly 300%.
Hungary has proven an alluring haven for Chinese businesses seeking a foothold in Europe.
The battery titan CATL, the world's foremost producer of electric vehicle batteries, is also erecting a $7.6 billion (approximately 6.7 billion euros) factory in the nation to fortify its grip on the European battery industry.
The presence of Chinese companies has sparked tensions with the European Union, to which Hungary belongs.
Last month, the Financial Times reported that the EU is probing whether BYD's Hungarian factory has benefited from shady subsidies from the Chinese government.
- What explains BYD's decision to invest in local production in Europe? High tariffs lock BYD out of the US market, while it faces a 17% import tax in Europe, creating incentives for the company to invest in local factories.
- Not only is BYD constructing a factory in Hungary, but it also plans to initiate construction on another factory in Turkey in the coming years. Moreover, bigwigs from the company hinted that proposals for a third European factory are under consideration.
- This move by BYD poses a substantial challenge to Tesla, which operates a Gigafactory in Germany and deems Europe its third-largest market.
- Elon Musk's automotive group sold 327,000 vehicles in Europe last year, but sales plummeted in 2025 due to vigorous responses to Musk's involvement in European politics and his support for the extreme-right AfD.
- In contrast, BYD's European sales increased significantly, with a rise nearly 300% in the first quarter of 2025.
- The battery titan CATL, the world's foremost producer of electric vehicle batteries, is also erecting a massive factory in Hungary to fortify its grip on the European battery industry, adding to the presence of Chinese companies in Europe that has sparked tensions with the European Union.
