BYD (OTC: BYDDY) has rejected allegations that it violated environmental regulations during construction of its electric vehicle manufacturing plant in Hungary.
Executive Vice President Stella Li addressed the claims directly at an international conference in Belgrade, offering an unambiguous denial of the accusations.
“That is a false claim,” Li said, adding that the Chinese automaker had engaged lawyers to respond to the allegations.
Hungarian authorities launched an investigation into claims that toxic soil was moved from BYD’s construction site in the southern city of Szeged to a separate location.
The probe is among the latest environmental reviews targeting companies operating in Hungary’s rapidly expanding electric vehicle and battery manufacturing sector.
Battery producers have faced increasing regulatory scrutiny across Hungary as authorities place greater emphasis on environmental compliance throughout the industry.
Despite the ongoing investigation, BYD said it remains committed to its Hungary project and is focused on ramping up production at the facility.
Li confirmed earlier this month that vehicle assembly at the Szeged plant is expected to begin in the fourth quarter of this year.
The factory will serve as BYD’s first manufacturing facility within the European Union and forms a central part of the company’s broader regional expansion strategy.
BYD is also actively evaluating options for a second European production site, with Li confirming the company has already drawn up a shortlist of potential locations.
Possible approaches under consideration include acquiring an existing factory, forming a partnership with another manufacturer, or constructing an entirely new facility from the ground up.
During her visit to Serbia, Li met with President Aleksandar Vucic, who indicated the country could play a role in the future development of BYD’s European manufacturing network.
BYD has been steadily expanding its footprint across Europe as Chinese automakers seek to increase local production capacity and strengthen their competitive position in the region.
The company has not yet announced a final decision regarding the location or structure of its second European plant, leaving several countries in contention for the investment.
