Chinese electric vehicle maker BYD will start building an electric bus factory in Komaron, a town in northern Hungary, believed to be the first of its kind on the European continent, BYD and Hungarian officials announced on Monday, Oct. 10.
A report by the Xinhua News Agency said that the project will cost about 20 million euros (about $22.4 million), with 925 million forints (about $3.4 million) to be shouldered by the Hungarian government.
The project was welcomed by Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto, who pointed out that the country has a long been into bus manufacturing, having built thousands for the East European market in the past.
Szijjarto said that the facility is expected to become operational in the first quarter of 2017. The factory will first build 200 buses a year, and, according to BYD, will eventually be able to produce 400 units a year.
The minister said that the project is expected to provide 300 new jobs to people in the area.
Meanwhile, China's ambassador to Hungary Duan Jielong said that BYD is committed to its goal of providing public transport with zero emissions as the company integrates R&D technology and green energy in vehicle manufacture.
Isbrand Ho, BYD Europe's managing director, said that the establishment of the facility has strengthened BYD's commitment to the European market. He said that Hungary was chosen for its strategic central location and its long tradition in bus manufacture and engineering excellence.
"The Hungarian plant will begin production in the first quarter of 2017. It will have its own R&D Centre and battery test facility," Ho told China Daily. He added that BYD is also exploring other European location to build assembly plants.
As one of China's largest businesses, BYD first specialized in rechargeable battery technology before it became a pioneer in high-efficiency automobiles and lead in electric-powered public transportation sector.
The project is expected to boost Hungary's competitiveness in the global market while complying with its environmental laws and policies, the report said.