Another gigantic car factory to bring a huge investment to Hungary
China’s BYD plans to build a car factory in Hungary. One of the world’s largest electric car manufacturers could decide on the project as early as this year. Production will most likely start for the European market in 2025.
The original plan was for China’s BYD to build a factory in the UK. However, this was cancelled due to Brexit. Now, Hungary seems to be an ideal location for this new car factory, writes vg.hu, based on the Financial Times.
Hungary could be a good choice, as the industry has an established infrastructure. Michael Shu, the company’s European chairman, says the UK is not even in the top 10 countries to build a plant in right now. The continent looks much more favourable, with Hungary, Germany, France, Spain and Poland currently looking the most likely.
BYD has been developing batteries since 1995 and has been gaining ground in the EV (electric vehicle) market in recent years, Pénzcentrum writes.
BYD has been developing batteries since 1995 and has been gaining ground in the EV (electric vehicle) market in recent years. The company operates on the Ford principle: that is, it controls most of its own parts and the production of electronics and battery systems. This is a business model they believe differentiates them from their competitors, who only buy the technology. They call it “vertically integrated”.
The decision is likely to be taken this year. The aim is to start production of the first vehicles as early as 2025.
Read alsoNew York Times: Hungary-USA nuclear deal underway? What will Putin say?
Source: Világgazdaság, Pénzcentrum, Financial Times
They want to manufacture their JUNK in Hungary….not surprising
Indebtedness.
Hungary – it just GROWS to China.
Electric vehicle manufacture not nearly as complicated as fabricating petrol driven vehicles… BYD just wants to build and distribute from inside of the EU tariff wall (“Made in the EU”). Makes it easier to compete.
Looking at Hungary, Poland and Spain being able to make the short list – also due to attractive grants and incentives from the EU!
CHEAP Labour in Hungary.
Cheaper than Spain & Poland.
REMEMBER – that Hungary of the European Union Member country’s has the LOWEST Basic Pay structure.
LOL I’m sure HIPA will be quick to point the “advantages” to our pay structure (for a multinational company, that is) – achieving “Full Employment!” in Politician speak…
At first reading the headline (only), and without thinking of the other advantages of China manufacturing here (in Hungary), my immediate facetious reaction was ” My how low we’ve sunk, now, Hungarian labour is even cheaper than Chinese”.
One of the other questions that popped into my mind is, by c. ’25 will we have enough home-grown/local labour to meet the demands of (eg) “Build Your Dreams”, and all the others “dying” to build manufacturing plants here.
There is never a shortage of critics. However a big BYD production hub is good for Hungary. Besides direct employment to operate the factory, there is an eco system to service the factory. Construction of factory, transportation of components and finished goods. Services to cater to the employees like lodging, food etc. And there is the spare parts logistics for after sales. And BYD presence will attract other investments too. Cheers and Congratulations to Hungary.
There is never a shortage of critics. However a big BYD production hub is good for Hungary. Besides direct employment to operate the factory, there is an eco system to service the factory. Construction of factory, transportation of components and finished goods. Services to cater to the employees like lodging, food etc. And there is the spare parts logistics for after sales. And BYD presence will attract other investments too. Cheers and Congratulations to Hungary.