BYD executive vice president Stella Li has stated that 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, where she met with Serbian President Aleksandar Vucic to discuss a potential second European manufacturing site.
The denial comes after Hungary’s environment minister stated in May that BYD had “severely violated” its environmental responsibilities at the Szeged site, where Hungarian police are investigating whether toxic soil was improperly handled during construction. The authorities imposed a fine of 10 million forints, roughly 7,000, 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 manufacturing facility in Europe, a milestone that has drawn both investment interest and political scrutiny. Hungary had 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.
The political landscape has since shifted. Peter Magyar, who replaced Orban earlier this year, has taken a tougher line on environmental and labor standards at Chinese-backed projects. However, subsequent soil testing has complicated the initial allegations — later checks on surrounding farmlands found no contamination above regulatory limits.
Li’s appearance in Belgrade served a dual purpose: addressing the environmental controversy while discussing BYD’s search for a second European plant. The company is open to buying an existing facility, partnering with another manufacturer, or building from scratch. For BYD, the stakes extend well beyond a 7,000 fine — the company overtook Tesla as the world’s largest seller of battery-electric vehicles in 2025 and is racing to establish European production before tariff walls rise further.
