Chinese electric vehicle giant BYD will establish its European headquarters and a new research and development center in Hungary, according to the company’s CEO and President, Wang Chuanfu.
The announcement was made in Budapest at a joint press conference with Hungarian Prime Minister Viktor Orbán.
The new base will create nearly 2,000 jobs in sectors of sales, after-sales, testing, certification, and localized vehicle development.
The new HQ marks the fifth site for BYD in Hungary, following the bus factory in Komárom, additional facilities in Fót and Páty, and Szeged, the location of their forthcoming passenger-car manufacturing plant.
Wang said the move represents a deepening of China-Hungary cooperation and a “natural step forward” as the Shenzhen-based company scales up its European operations.
Hungary, already a key automotive manufacturing hub in Europe, hopes to strengthen its position in the EV sector.
“Our goal is for foreign investors to bring development capacities to Hungary,” said Orbán. “That is why today’s meeting and agreement are of great importance.”
Last year, BYD sold over 4.27 million electric vehicles globally, becoming the world’s best-selling EV brand. In Europe, BYD is gaining ground quickly — selling over 11,000 vehicles in April across 14 countries, outperforming Tesla.
BYD Co., Ltd., a Chinese electric vehicle (EV) and hybrid vehicle manufacturer, has emerged as a global leader in the automotive industry, particularly in the EV sector. Drawing from recent reports by BBC, CNN, and CBS News, this analysis evaluates BYD’s performance, competitive positioning, strategic initiatives, and challenges as of May 20, 2025. The analysis is structured around key themes: financial performance, market dominance, technological innovation, global expansion, and external challenges.
BYD has demonstrated robust financial growth, outpacing its primary rival, Tesla, in key metrics. In 2024, BYD reported record annual revenue of 777.1 billion yuan ($107 billion), a 29% increase from the previous year, surpassing Tesla’s $97.7 billion. Its net profit for 2024 rose 34% to 40.3 billion yuan, with a fourth-quarter profit surge of 73.1% to 15 billion yuan ($2.1 billion). In the first quarter of 2025, BYD’s net income reached 9.15 billion yuan ($1.3 billion), exceeding analyst expectations of 8.1 billion yuan, although sales of 170.36 billion yuan fell slightly short of projections. This financial strength is reflected in its stock performance, with Hong Kong-listed shares surging 46% in 2025, hitting a record high in March, compared to Tesla’s 35% decline.
The company’s profitability is driven by strong sales of both battery-electric vehicles (BEVs) and hybrids, with 4.27 million vehicles delivered in 2024, a 40% increase year-over-year. In Q1 2025, BYD sold over one million new-energy vehicles (NEVs), including BEVs and hybrids, marking a 60% sales surge. These figures highlight BYD’s ability to capitalize on cost control and scale, with its chairman, Wang Chuanfu, claiming superior cost management compared to competitors like Toyota.
BYD has solidified its position as the world’s leading EV manufacturer, particularly in China, the largest auto market. In 2024, BYD overtook Tesla in global EV sales, delivering 1.76 million BEVs (slightly below Tesla’s 1.79 million) but significantly outpacing it when including hybrids. In Q1 2025, BYD’s market share in China grew to 13.6% from 12.1% the previous year, fueled by aggressive pricing strategies and the introduction of affordable models like the Qin L EV, priced at $16,500. Posts on X also note BYD’s 41% year-over-year sales growth in 2024 compared to Tesla’s 1.1% decline, underscoring its competitive edge.
BYD is aggressively pursuing international growth, aiming to double overseas sales to 800,000 vehicles in 2025. Only 10% of its 2024 shipments were exported, indicating significant growth potential in markets like Europe, Southeast Asia, and South America. To overcome trade barriers, BYD is investing in local assembly plants, with facilities under construction in Hungary and Turkey and potential plans for a third plant in Germany. However, its expansion faces challenges, including brand recognition issues and allegations of labor violations, such as “slavery-like conditions” at a Brazil construction site, which BYD denied.
In the U.S., 100% tariffs on Chinese EVs have blocked BYD’s passenger vehicles, though its electric buses are in service in California. Similarly, Canada’s high tariffs and geopolitical concerns, including fears of technology transfer to the U.S., have delayed approvals for a Mexican plant. Despite these hurdles, analysts remain optimistic about BYD’s global potential, citing its ability to adapt to local markets and leverage cost advantages.
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