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Update: Hungary Probes BYD Investment After Ex-Foreign Minister Takes Job at Carmaker
(Updates throughout for clarity and to add a statement from Hungary's Government Communications Office and to correct reference to the date of BYD's electric trucks announcement)Hungary has launched an investigation into state support for BYD's (HKG:1211, SHE:002594) investment after former Foreign Minister Péter Szijjártó left the government to join the Chinese automaker as an executive.Prime Minister Péter Magyar told lawmakers on Monday that authorities will review decisions, negotiations and state commitments related to BYD's investment approved during the previous government. The probe will examine subsidies, tax breaks, permits, environmental exemptions and publicly funded infrastructure provided for the Chinese automaker.Magyar alleged that Szijjártó helped BYD expand in Hungary with "hundreds of billions" of forints in public funding, diplomatic backing and state infrastructure while in office."We will examine all the decisions, negotiations and state commitments made by Péter Szijjártó that were related to the BYD Hungary investment," the Associated Press quoted Magyar as saying. "We will investigate who made these decisions, who prepared them, what professional warnings were ignored, and how much burden they left on Hungarian taxpayers, workers, local communities and the environment."BYD did not immediately respond to' request for comment, while Hungary's Communications Office declined and said it is "unable to provide any additional information or copies of internal communications while administrative reviews are ongoing."Szijjártó announced his resignation from parliament July 15 to join BYD. His post on Facebook described the new role as a prestigious opportunity to work for one of the automotive industry's biggest success stories.While serving in government, the AP reported that Szijjártó, who was appointed to lead the Ministry of Foreign Affairs and Trade in September 2014, played a key role in attracting Chinese investment to Hungary.Previous announcements show that in May 2025, BYD secured state support worth 20 billion forints after it picked the capital city of Budapest for its European headquarters and for a research and development center. A month later, BYD also unveiled a 75.7 million-euro investment to expand its electric bus factory in Komárom to manufacture electric trucks.BYD's first passenger vehicle plant on the European continent is also being built in Hungary, as announced in 2023. BYD Executive Vice President Stella Li told Reuters in June 2026 that the facility will start production within the year, which is about a year later than expected."Hungary is the number one priority right now," Li told the news outlet then. The executive added that the automaker was prioritizing production in Europe and that work on a planned factory in Turkey has been put on hold.Reuters also noted that BYD's sales in Europe surged 270% in 2025 to nearly 188,000 vehicles, while sales rose 144% year to date through May to more than 100,000 units.
HKG:1211SHE:002594
