Chinese electric vehicle giant BYD will relocate its European headquarters from the Netherlands to Hungary as part of a newly signed strategic cooperation agreement with the Hungarian government on May 15.

BYD will set up a business and development centre in Budapest from an investment of HUF100bn (€250mn) and the government is providing a HUF20bn grant, Minister of Foreign Affairs and Trade Peter Szijjarto announced.

The first project focuses on the integration of intelligent technologies into modern mobility and the second serves to develop next-generation electromobility technologies. BYD founder and head Wang Chuanfu said.

The new centre will create 2,000 jobs and around 90% of those will be for people with university degrees, mainly engineers. At least 50% of the patents the centre produces will be registered in Hungary, and commitments were made to partner with as many local businesses and suppliers as possible, he added.

The move cements Hungary’s status as BYD’s European hub and is expected to create 2,000 new jobs. It follows the company’s decision last year to build its first European manufacturing plant in Szeged, southern Hungary, a €3.6-4.1bn investment aimed at producing up to 200,000 vehicles annually in the first phase, with capacity potentially rising to 350,000.

Industry sources had indicated as early as late 2024 that Hungary was in line to become BYD’s regional headquarters, reflecting the government’s aggressive courtship of Chinese industrial investors. The company also plans to open a second factory in Turkey and is scouting a third European site, with a final decision expected within 18 months.

BYD opened its first continental European electric bus factory in Hungary in 2017 from an investment of €16mn. The company assembles 400 vehicles annually at its plant in Komarom, on the border with Slovakia. 

The company also operates two bases in the outskirts of the capital.

Hungary’s deepening relationship with BYD underscores Prime Minister Viktor Orban’s eastward pivot in foreign and economic policy, as Budapest positions itself as a key bridge between China and the EU amid growing geopolitical tensions.

At the signing ceremony, followed by a press conference, Orban praised China as the global leader in electromobility and reaffirmed Hungary’s commitment to "intensive and pragmatic" relations with Beijing, citing major joint infrastructure projects and rising bilateral trade. He also reiterated opposition to EU tariffs on Chinese goods, calling instead for economic cooperation based on mutual respect.