EditFully built cars disassembled and reassembled at Hungarian BYD factory
This practice, if confirmed as widespread, could spark renewed debate over the effectiveness of EU tariff policies
New video evidence from inside BYD’s electric vehicle facility in Hungary shows cars arriving in a ready-to-drive condition from China, only to be systematically disassembled and then reassembled on site.
The investigative outlet Átlátszó, partner of EUalive, reports that this process appears designed to qualify the vehicles for the “Made in EU” label while potentially circumventing import tariffs and taxes that apply to fully Chinese-made electric vehicles.
The footage, obtained and published by Átlátszó, captures workers at the Komárom plant (operated by BYD’s local subsidiary) taking apart complete vehicles – including models believed to be Atto 3 or similar – down to major components such as chassis, body panels, interiors, and powertrains. The cars are then put back together on the assembly line. Sources familiar with the operations, cited in the report, describe the vehicles as arriving “ready to drive” before the procedure begins.
This practice resembles CKD (Completely Knocked Down) assembly – a method historically used by automakers to ship vehicles in parts kits to avoid higher import duties on finished goods.
In the EU context, however, such minimal local processing may not meet the strict rules of origin required for tariff-free intra-EU movement or to fully qualify as “European-made” under customs and trade regulations. The EU has imposed additional anti-subsidy tariffs (up to 17–38% on top of the standard 10% import duty, depending on the producer) on Chinese-made EVs since late 2024, prompting Chinese manufacturers like BYD to accelerate local production investments.
BYD’s Hungarian operations have received substantial public support. According to Átlátszó, the Hungarian government has provided nearly 130 billion HUF (approximately €330–340 million at current rates) in subsidies, tax breaks, infrastructure aid, and other incentives for the project so far. This includes support for both the newer major passenger vehicle plant in Szeged (southern Hungary, where trial production began in early 2026 and full-scale output is ramping up) and related facilities like the one in Komárom.
The report highlights the apparent contradiction: while BYD promotes its Hungarian factories as major job-creating manufacturing hubs to bypass EU tariffs on Chinese imports, the observed process involves little meaningful value addition beyond reassembly. Critics argue this could undermine the intent of EU trade defences aimed at protecting local industry from subsidized imports.
BYD has not publicly commented on the specific video claims as of the article’s publication date. Official statements from the company emphasize that Hungarian production enables tariff-free sales across the EU single market, supports local employment, and contributes to Europe’s green transition. The Szeged plant, announced with a €4+ billion investment, is projected to reach annual capacity of 150,000–300,000 vehicles once fully operational.
The revelations come amid broader scrutiny of Chinese EV investments in Europe. The EU continues to monitor compliance with origin rules, state aid guidelines, and subsidy transparency, especially as companies like BYD expand to counter import barriers.
For the original Hungarian-language report and embedded video footage, see: Átlátszó article.
Caption: BYD DOLPHIN SURF Showcased in Carmelite Monastery, the Hungarian Prime Minister’s Office [byd.com]
Updated: March 19, 2026 - 16:17
