Hungarian Investment Promotion Agency

With the support of HIPA, the company’s European management center will be established in Budapest. The investment will create around 2,000 high value-added jobs. The unit in the Újbuda district of the capital will play a leading role in several key areas of BYD’s European operations, including sales and the design of models tailored to European market needs.

Another major component of the investment is the establishment of an R&D base in cooperation with Hungarian universities, start-ups, and suppliers. As part of this initiative, BYD is launching two large-scale programs, both record-breaking in size among the R&D projects managed by HIPA.

The first project, valued at EUR 105.1 million, aims to develop a driving technology system based on artificial intelligence that enables vehicles to learn autonomously by analyzing data collected in real time from driving situations.

The second R&D project is even larger in value, EUR 141 million, and focuses on further developing BYD’s powertrain technology to enhance the performance and energy efficiency of electric vehicles.

In these projects, with a combined value of almost EUR 250 million, BYD is collaborating with at least three Hungarian universities and has committed to registering at least 50% of the patents developed in Hungary locally.

The Budapest headquarters, the R&D base, and BYD’s manufacturing plant under construction in Szeged — the company’s first car plant in Europe — will together significantly strengthen Hungary’s position in the automotive industry, which is currently undergoing the most profound transformation in its history. This strategic ambition is further supported by a Strategic Cooperation Agreement between the Hungarian Government and BYD, signed concurrently with the announcement of the new investments.

Developing Hungary’s automotive industry, that accounts for over a quarter of the country’s manufacturing output, is a key priority for HIPA. Between 2014 and 2024, the Agency supported 244 large investment projects in the sector. The ongoing investment projects are expected to bring annual vehicle production capacity in Hungary to well over one million units. However, the next chapter is all about creating the highest possible intellectual value. BYD’s new investment gives fresh impetus to this effort and will contribute to the lasting reinforcement of Hungary’s role in the European automotive industry.