Hungary launches probe into BYD investment

Hungary has initiated an investigation into a large foreign investment by Chinese automaker BYD (1211.HK). The government announced that the probe will focus on the BYD Hungary project, treating it as a priority case in the broader review of support for major multinational firms.

Prime Minister Péter Magyar informed lawmakers that the cabinet will examine all decisions, negotiations and state commitments linked to this investment. The move brings formal scrutiny to the terms under which BYD was attracted to expand operations in Hungary.

The review will cover a wide set of state measures provided or promised in connection with the BYD project. These include subsidies, tax breaks, permits, environmental exemptions and publicly funded infrastructure or other investments associated with large multinational companies.

Officials plan to identify which bodies and individuals made the relevant decisions and who prepared the underlying documentation. The investigation will also look at what professional warnings may have been raised and whether any of these were ignored during the approval process.

A further objective of the review is to assess the burdens that the BYD-related commitments may impose on Hungarian taxpayers, workers, local communities and the environment. The government has indicated that both the financial and non-financial impacts of the support package will be evaluated.

In parliament, Péter Magyar stated that former foreign minister Péter Szijjártó had assisted BYD while in office. He said this support involved large amounts of public money, diplomatic backing and the provision of state infrastructure for the project.

The investigation will therefore also examine how this support was structured and approved. Authorities aim to clarify the professional and financial basis for prior commitments tied to the investment and to determine whether they aligned with broader public interests and legal requirements.

The government has not yet detailed a timeline for completing the investigation or specified what potential actions could follow its conclusions. The current focus is on gathering information about decision-making processes and the scale of state involvement in the BYD project.

At the time of the announcement, neither Péter Szijjártó nor BYD had issued a public response to the statements made in parliament or to the opening of the probe. Their positions on the allegations and on the structure of the investment remain unknown based on the available information.