China-based electric vehicle maker BYD said it had not breached environmental rules at its first European Union plant in Szeged, Hungary. The statement followed a police inquiry into allegations involving soil removed from the site.

Vice president Stella Li called the allegation false and said BYD had hired a lawyer. The Csongrád-Csanád County Government Office said suspicions of environmental damage were substantiated. Meanwhile Hungary’s environment minister accused the project of breaching permit obligations.

BYD has said the Szeged facility is its first European passenger-vehicle factory. The plant will be built in phases, and is expected to create thousands of local jobs. Earlier this month, Li said vehicle assembly was expected to begin in the fourth quarter of 2026.

Li also said BYD has shortlisted options for a second European production facility, including buying an existing plant, partnering, or building its own.

🔗 Source: Bloomberg

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