No production capacity was indicated nor any solid time line, but the world’s leading manufacturer of new energy vehicles (NEV) said that the new plant will boast of an “advanced car production line.”

Situated in the heart of Europe, Hungary is chosen because it’s an essential transportation hub and boasts a rich history of expertise in the automotive industry. With a mature infrastructure and a well-established industrial foundation, Hungary is also home to other European manufacturers as a production location for passenger cars including Suzuki, Audi, Mercedes-Benz, and BMW.

Though BYD said the move will boost employment and the local economy, the move will also be very beneficial to the Chinese automaker. The move will also help them avoid any import tariffs resulting from the European Union’s anti-subsidy investigation into Chinese EVs.

BYD, along with SAIC and Zhejiang Geely Holding Group, have been made a focus of the EU investigation. The EU thinks that Chinese vehicles, particularly EVs, are priced artificially low because of huge state subsidies. Europe is the biggest EV export region for China, receiving more than 600,000 vehicles as of November this year.

Currently, BYD has opened in 19 countries in Europe and has introduced five models: the Han, Tang, Atto 3, Seal, and Dolphin. It plans to add three more models within the next 12 months, including the Seal U (see lead photo).

BYD aims to have a 10 percent market share in Europe by the end of the decade.