Published on 6/20/2026
Chinese electric car manufacturer BYD rejected accusations of violating environmental rules in Hungary while building its first factory inside the European Union, stressing that it had not committed any violations, according to Bloomberg.
The company’s executive vice president, Stella Lee, said that the allegations of transporting contaminated soil from the factory site in the southern Hungarian city of Szeged are “untrue allegations,” adding: “We have a lawyer to respond to these allegations because we did not do anything wrong.”
The Hungarian police are investigating accusations that the company transported toxic soil from the construction site to an external site, in a case that reflects a greater tightening by the Hungarian authorities towards the environmental aspects related to the electric car industry, according to Bloomberg.
Meanwhile, Lee confirmed that BYD is continuing to study sites for a second factory in Europe, with a current focus on accelerating the operation of its facility in Hungary. She said: “We want to increase the operational capacity of this factory as soon as possible.”
She added that the company is considering several options for expansion, including acquiring an existing factory, entering into a partnership, or building a completely new facility.
Lee had reported earlier in June that assembly of cars at the Hungarian factory would begin during the fourth quarter of this year.
During a visit to Serbia, Li met with President Aleksandar Vucic, who presented his country as a potential location within BYD’s production network in Europe, according to Bloomberg.
These moves come at a time when Chinese electric car companies are accelerating their industrial expansion within Europe to enhance their presence in the market and reduce the impact of trade restrictions imposed on imports coming from China.
