BYD Rejects Claims It Violated Hungary’s Environmental Rules

**BYD has forcefully rejected allegations that it violated environmental rules in Hungary during construction of its first European Union plant.** The Chinese EV maker, through executive vice president Stella Li, called the claims false and confirmed it has retained legal counsel to respond. Hungarian police are investigating accusations that BYD moved toxic soil from its Szeged construction site to an external location, a probe that signals Prime Minister Peter Magyar's administration is taking environmental oversight more seriously than his predecessor Viktor Orban's government did.</p><p class="summary-lead">**The controversy comes as BYD races to ramp up production at its Hungarian facility, with car assembly slated to begin in the fourth quarter.** Li emphasized the company's urgency to get the plant operational, even as it simultaneously scouts for a second European production site. She revealed BYD has a shortlist of options, including buying an existing facility, forming partnerships, or building from scratch, indicating the company is aggressively expanding its European footprint despite regulatory headwinds.</p><p class="summary-lead">**Beyond Hungary, BYD is actively courting other European nations, with Serbia's President Aleksandar Vucic publicly offering his country as a key production hub.** Li met with Vucic in Belgrade, where he described Serbia as "an important spot on the map" for BYD's European network. This diplomatic push underscores how Chinese EV makers are leveraging geopolitical ties to secure manufacturing bases, even as environmental and political scrutiny intensifies across the continent. **What to watch next:** Whether the Hungarian investigation results in fines or operational delays, and which European country BYD selects for its second plant — particularly if it opts to acquire an existing facility from struggling legacy automakers like Stellantis.