Car plants under construction by Chinese BYD and Germany's BMW (BMWG.DE) are expected to start production in Hungary in the second half of 2025, which could help boost the country's economy, Prime Minister Viktor Orban's chief of staff said on Thursday.
Under Orban, Hungary has become an important trade and investment partner for China, in contrast with some other EU nations that are considering becoming less dependent on the world's second-largest economy. In Europe, Germany is Hungary's main trading partner with several car plants already operating in the country.
Orban has also spearheaded a drive in central Europe to bring Chinese EV and battery manufacturing plants to Hungary.
However, Hungary's economy dipped into a technical recession in the third quarter as it contracted by 0.7% from the previous three months, weighed down by weakness in farming, industry and construction. This is a problem for the Hungarian leader as he seeks to revive the economy ahead of a 2026 national election where he is facing an unprecedented challenge from a new opposition party.
"The optimism for next year's economic policy is supported by current developments, the new plants of BYD and BMW are going to start production next year, in the second half of next year," his chief of staff Gergely Gulyas told a briefing.
One of the biggest Chinese investors in Hungary, CATL, is building a 7.3 billion euro battery plant in the eastern city of Debrecen, while Chinese EV maker BYD announced last year it was building its first European plant in Szeged in the south of the country. BMW is building a car plant in Debrecen,
The government expects Hungary's economy to grow by 3.4% in 2025.
