BYD, the leading electric vehicle manufacturer, is facing serious allegations of labor abuses at its factory in Hungary, marking the first time such claims against a Chinese-owned auto company have reached the European Parliament. An investigation by China Labor Watch revealed that contractors allegedly forced workers to endure excessive hours—over 12-hour shifts, seven days a week—under conditions that may violate Hungary’s labor laws and resemble forced labor.
These allegations could have significant implications for BYD’s operations in Europe, especially as the company aims to ramp up production at its Szeged facility, which is expected to manufacture 300,000 cars annually. With BYD’s market share in Europe rapidly increasing—surpassing Tesla in registrations in early 2025—any adverse regulatory or reputational fallout could hinder its ambitious growth plans and affect investor sentiment.
Market professionals should closely monitor how these labor issues evolve, as they could impact BYD’s expansion strategy and investor confidence, particularly in light of the EU’s scrutiny of labor practices among foreign firms.
Source: cnbc.com