BYD to build first Europe plant in Hungary, paper says

FRANKFURT -- Chinese electric vehicle giant BYD plans to build its first European car factory in Hungary, a German newspaper reported.

BYD has made the decision, the Frankfurter Allgemeine Sonntagszeitung reported, citing unnamed sources close to the automaker.

A government website in Shenzhen, where BYD is headquartered, posted an article last month saying that Hungary's Prime Minister Viktor Orban met BYD Chairman and President Wang Chuanfu on a visit to the company.

BYD, contacted by Reuters, said that it was still looking for the right location and would make an announcement at the end of the year.

The Hungarian government did not immediately respond to requests for comment.

BYD Executive Vice President Stella Li said in February that the automaker wants to build cars in Europe and is carrying out feasibility studies.

BYD's European markets include Germany, France, the U.K., Spain and the Scandinavian countries. The company has an electric bus factory in Hungary, which opened in 2016.

Mercedes-Benz, Audi and Suzuki have car plants in Hungary. BMW's new Hungarian plant is scheduled to start building Neue Klasse electric cars in 2025.