TL;DRBYD denies environmental breaches at its Szeged factory as Hungarian police probe toxic soil claims and the company scouts a second European plant.
BYD executive vice president Stella Li said the Chinese automaker has complied with all environmental regulations at its Szeged factory in Hungary, pushing back against allegations that the company violated its obligations during construction. Li made the comments at a press conference in Belgrade on Friday, where she met with Serbian President Aleksandar Vucic to discuss a potential second European production site.
The denial comes after Hungary’s environment minister said in May that BYD had “seriously violated” its environmental obligations at the Szeged site, where Hungarian police are investigating whether toxic soil was improperly handled during construction work. The government imposed a fine of 10 million forints, roughly $27,000, on the company over the incident.
BYD began trial production at the Szeged plant in early 2026 and plans to start full assembly operations in the fourth quarter. The factory is the first major Chinese automaker production facility in Europe, a milestone that has drawn both investment interest and political scrutiny. Hungary positioned itself as China’s gateway into the EU under former Prime Minister Viktor Orban, capturing 44% of all Chinese foreign direct investment into Europe in 2023.
