The automaker did not provide information on the value of the investment in its report. Hungarian Foreign Minister Péter Szijjártó today described the project as one of the largest investments in the history of the Hungarian economy. He added that the Hungarian government will provide financial incentives to the Chinese firm for the construction of the factory, details of which the cabinet will announce later.

According to Bloomberg, the new factory will produce both pure electric cars and plug-in hybrid cars for the European market. BYD already operates a factory in Hungary in the town of Komárom near the Slovak border, which produces buses with an electric drive.

According to Bloomberg, other European countries, including Germany and France, also applied for BYD’s new factory. BYD’s decision to build a factory in Hungary confirmed earlier information from sources in the German newspaper Frankfurter Allgemeine Sonntagszeitung.

For European automakers, such as the German concern Volkswagen, the planned new BYD factory means the prospect of another strong competitor in the European electric car market, writes Bloomberg.