The European Union is investigating whether BYD’s new factory in Hungary received subsidies from the Chinese government for its establishment.
According to the “Financial Times,” European authorities have initiated an investigation to determine if BYD’s new factory for electric vehicle production in Hungary, which is set to start production in October, received subsidies from the Beijing government.
The same publication indicates that if Brussels discovers that the Chinese company benefited from unfair state aid, it could force the company to sell some assets, reduce capacity, repay the subsidy, and pay a fine for non-compliance.
It is worth noting that the factory in Hungary is one of two that BYD is building in Europe for the production of its electric vehicles. The other production facility is located in Turkey, with operations expected to commence in March 2026. When fully operational, this facility will have a total production capacity of 500,000 cars per year.
