Hundreds of Billions of Forints Put the BYD Hungary Investment Probe in Motion
“Hundreds of billions (of forints)” in public support are now at the center of Hungary’s BYD Hungary investment probe, after former foreign minister Péter Szijjártó left Parliament last week to take an executive role at the Chinese automaker.
Hungary’s government announced Monday that it will investigate the major foreign investment by BYD, the world’s top electric carmaker, according to ABC International. The probe follows accusations that Szijjártó faced a conflict of interest because he helped court BYD while in office, then accepted a job at the company.
Prime Minister Péter Magyar told lawmakers that Szijjártó, a close ally of former Prime Minister Viktor Orbán, had helped BYD while in office “with hundreds of billions (of forints) in public money, diplomatic support and state infrastructure.”
“We will examine all the decisions, negotiations and state commitments made by Péter Szijjártó that were related to the BYD Hungary investment,” Magyar said Monday.
Magyar said the investigation will also examine subsidies, tax breaks, permits, environmental exemptions and publicly funded investments granted to large multinational firms during Orbán’s tenure.
The government’s language is broad. It targets not only the BYD file, but the machinery behind Hungary’s push to attract major foreign manufacturers under Orbán.
Neither Szijjártó nor BYD has responded to Magyar’s conflict of interest allegations, according to the source material. Szijjártó has described his new role as a “prestigious” opportunity at one of the “greatest success stories” in the automotive industry.
BYD’s Hungary Bet Includes a First European Factory and 20 Billion Forints in Aid
The BYD Hungary investment probe matters because Szijjártó was not a bystander in the company’s Hungarian expansion. While serving in government, he played a central role in bringing Chinese investment to Hungary, including BYD’s planned presence there.
In 2023, Szijjártó announced that BYD would open its first European factory in Hungary. That factory would allow BYD to avoid European Union import tariffs on Chinese electric vehicles, which were imposed to protect Europe’s domestic auto manufacturing sector.
Related AP reporting in the supplied material says Szijjártó described the plant as “one of the largest investments in Hungarian economic history.” He also said the decision followed 224 rounds of negotiations between BYD and Hungary’s government.
In 2025, Szijjártó announced another BYD commitment: the company would place its European headquarters and a research and development center in Budapest. That project was tied to 20 billion forints ($63.7 million) in government assistance.
| BYD Hungary commitment | Announced by Szijjártó | Public support disclosed in source |
|---|---|---|
| First European factory in Hungary | 2023 | Financial incentives mentioned, amount not disclosed |
| European headquarters and R&D center in Budapest | 2025 | 20 billion forints ($63.7 million) |
| Broader state support now under review | Announced probe in 2026 | Magyar cited “hundreds of billions (of forints)” |
That sequence is why the timing of Szijjártó’s move to BYD is politically explosive. He helped negotiate or announce major public support for the company. He then joined it after leaving Parliament.
For readers tracking the political backdrop in Budapest, XOOMAR has covered another Hungary power fight in Tisza Forces Hungary President Out With Law Rewrite. For China-linked technology policy beyond autos, see Beijing Forces Apple Intelligence China Into AI Trade-Off.
Orbán’s China EV Strategy Is Now Magyar’s Audit Target
The probe cuts into one of Orbán’s signature industrial bets: turning Hungary into a hub for lithium-ion battery manufacturing and electric vehicle supply chains, largely by attracting Chinese companies.
The source material says Chinese battery manufacturers opened a series of plants across Hungary under that push. It also says the projects drew protests from local residents, environmentalists and opposition politicians, who feared pressure on water supplies, environmental damage and deeper economic dependence on China.
Magyar’s review does not stop at BYD. His stated scope includes “all subsidies, tax breaks, permits, environmental exemptions and publicly-funded investments” granted to large multinationals during Orbán’s years in power.
“We will investigate who made these decisions, who prepared them, what professional warnings were ignored, and how much burden they left on Hungarian taxpayers, workers, local communities and the environment,” Magyar said.
XOOMAR analysis: the key issue is disclosure. The source record already shows one support package with a published value, 20 billion forints ($63.7 million), and another factory package where financial incentives were mentioned but not disclosed. If the government releases more detail, investors and policymakers will get a clearer picture of how Hungary priced its race for Chinese EV investment.
That does not mean BYD’s projects have been delayed. The supplied source material does not report any change to BYD’s construction timetable, hiring plans or Hungarian operations.
The Conflict Question Turns on Access, Timing and Undisclosed Commitments
The next phase of the BYD Hungary investment probe will likely center on a tight set of facts: what Szijjártó approved, what he knew, when job discussions began and what commitments Hungary made to BYD while he was in office.
The government has not yet published a full list of decisions under review. Magyar’s comments point to a wide document trail: negotiations, state commitments, subsidies, tax breaks, permits, environmental exemptions and publicly funded infrastructure.
Szijjártó’s wider record adds political weight to the case. While foreign minister, he maintained close ties with Russia after its full-scale invasion of Ukraine on Feb. 24, 2022, and frequently traveled to Moscow for energy talks and meetings with Russian Foreign Minister Sergey Lavrov, whom he called his “friend.”
During Hungary’s 2026 election campaign, the Washington Post reported that Szijjártó made regular phone calls to Lavrov during high-level EU meetings with “live reports on what’s been discussed.” Szijjártó dismissed the report, while acknowledging that he conferred with Lavrov before and after EU foreign minister meetings about their agenda and decisions.
Magyar said last week that “as far as I know,” an investigation had been launched concerning Szijjártó’s connections to the Russian government.
For BYD, the immediate risk is reputational and political, based on the known facts. The company has not answered the allegations cited by Magyar. It also has not publicly said, in the supplied material, whether it will cooperate with the investigation or defend Szijjártó’s appointment.
The practical pressure points are now clear: whether Hungary discloses the full BYD incentive package, whether any environmental or tax exemptions become public, and whether the probe expands from political accusation into findings about specific decisions. Until then, the BYD Hungary investment probe is less a verdict than a test of how much sunlight Magyar’s government is prepared to put on Orbán-era industrial deals.
Impact Analysis
- The probe raises conflict-of-interest questions over a former minister joining a company he helped court while in office.
- Hungary’s use of subsidies, tax breaks and infrastructure support for foreign manufacturers is now under broader scrutiny.
- The case could affect confidence in BYD’s first European factory project and Hungary’s industrial investment strategy.
Originally published on XOOMAR. For more news and analysis, visit XOOMAR.
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