Construction of the electric car factory being built by the Chinese company BYD in Szeged is set to begin on March 1, with production commencing in June of next year, according to Nedeljnik.
The construction of the factory starts in a record time, just three months after Hungarian Minister of Foreign Affairs and Trade, Peter Szijjarto, announced that BYD had chosen the location near Szeged to start conquering the European market.
BYD became the largest seller of electric cars in the fourth quarter of last year, surpassing its main competitor, Tesla. BYD’s plans include being among the top five sellers of electric cars in Europe, producing approximately 750,000 vehicles annually.
Why the Chinese company chose Szeged as the location for its first European electric car factory has not been specifically explained so far. There is uncertainty about whether the key reason was the 118.6 million euros incentive provided by the Hungarian government to subsidize the necessary infrastructure upgrades for the factory, or because Hungary announced its intentions to engage in the production of lithium batteries.
However, what is even more intriguing is the information about who all were potential candidates or competitors to Szeged for the construction of the factory.
According to reliable sources, other candidates included Ghent in Belgium, Sofia, and – Belgrade. Based on precise criteria, the Chinese manufacturer created a ranking list where Szeged secured the top position with 511 points.
Belgrade secured the second position with 503 points, Sofia had slightly over 100 points, and Gent was in fourth place. The decision of the local authorities in the Belgian city to offer a five-year tax moratorium to the Chinese company, which is otherwise not allowed at the national level due to regulations within the European Union, did not sway the outcome. Notably, Belgrade’s application did not specify the exact location of the potential factory, only mentioning that it would be built “in the vicinity of the city.”
Minister Szijjártó stated that the BYD factory is one of the largest investments in Hungary’s economic history, and the expectation is that the factory alone will employ several thousand people, although plans aim to create 20,000-40,000 jobs related to this business.
