Chinese auto giant BYD is building its first European car plant in the Hungarian city of Szeged. Production of electric vehicles there is expected to begin at the end of 2026, and in Germany the company is already actively expanding its dealer network, Bild reports. For the German auto industry, this is a new challenge: competition from China is now arriving not only through imports, but also through factories within Europe.

The main concern is not only cheap cars, but also the production model itself. Frankfurter Allgemeine Zeitung writes that in Chinese industrial centers, workers may labor 10–12 hours, have only four days off per month, and earn around 600 euros.

China Labor Watch also reported risks of violations of Chinese workers’ rights at the construction site of the BYD plant in Hungary: long shifts, seven-day workweeks, and problems with payments. BYD rejects these accusations.

A similar scandal already occurred in Brazil: authorities added BYD to a registry of employers associated with conditions resembling slave labor after an inspection of the plant construction site in 2024.