On May 12, 2026, the Csongrád-Csanád County Government Office filed a criminal complaint against BYD Auto Hungary Kft. for failing to comply with the conditions of its environmental permit . Local media reports indicate that nearly 31,000 cubic meters of untested topsoil contaminated with alkylbenzenes above permitted limits was transported to ten properties near Szeged . As a result, authorities ordered the destruction of crops grown on that land . A separate environmental fine was reportedly issued by the authorities as early as mid-2025 . Hungary's Rural Development Minister, Dr. Viktória Lőrincz, described the findings as "serious irregularities" and launched a strict examination of the case .

Stella Li's Response

BYD Executive Vice President Stella Li has forcefully rejected the environmental allegations. Speaking at an international conference in Belgrade, she stated: "This is an inaccurate assertion — we have already engaged legal counsel to address it, as we have acted appropriately" . Li insisted that BYD has complied with all environmental regulations at the Szeged factory and is cooperating fully with Hungarian authorities .

Labor Allegations and Fines

The environmental probe is not the only challenge facing BYD in Hungary. The factory has faced serious and well-documented labor-related controversies.

• China Labor Watch investigation (March 2026): The New York-based NGO interviewed 50 Chinese migrant workers at the Szeged construction site. Their report documented 7-day workweeks, 14-hour shifts, passport confiscation, debt bondage, and multiple indicators of forced labor . These findings were raised in the European Parliament — the first time a Chinese company has been addressed there on labor abuse allegations .

• Official government response: Hungarian authorities confirmed labor law violations involving three companies participating in the BYD factory construction. As of June 9, 2026, 18 labor inspections and 9 occupational safety investigations had been initiated, and enforcement actions were taken against AIM Construction Hungary Kft., Plusz Kéz Kft., and LÉVAI-SECURITY Kft. .

• Brazil parallel: This is not an isolated incident. In January 2026, BYD settled a separate forced labor case in Brazil, agreeing to pay approximately 40 million Brazilian reais (about $8 million) .

Broader European Production Plans

Despite these headwinds, BYD is pushing forward with its European production ambitions. The controversies, however, have contributed to significant delays in its timeline.

• Timeline for vehicle assembly: Trial production finally began in Szeged in February 2026 . Full vehicle assembly is now confirmed to start in Q4 2026 . This is roughly a year behind the original late-2025 schedule . Initial output will run below full capacity for the first two years .

• Investment size: The Szeged facility is a multi-billion-euro project, with reports suggesting investments of over €3 billion for the own facility and an additional €700 million for an R&D center in Budapest .

• Search for a second production site: Stella Li told Reuters in June 2026 that BYD is looking to take over an existing factory in southern Europe for its second assembly plant, with Spain on the shortlist . As a result, BYD has put its planned $1 billion plant in Türkiye on hold to prioritize ramping up production at the Hungary site . The company also plans to establish to support its growing vehicle output in the region .

On May 12, 2026, the Csongrád-Csanád County Government Office filed a criminal complaint against BYD Auto Hungary Kft. for failing to comply with the conditions of its environmental permit . Local media reports indicate that nearly 31,000 cubic meters of untested topsoil contaminated with alkylbenzenes above permitted limits was transported to ten properties near Szeged . As a result, authorities ordered the destruction of crops grown on that land . A separate environmental fine was reportedly issued by the authorities as early as mid-2025 . Hungary's Rural Development Minister, Dr. Viktória Lőrincz, described the findings as "serious irregularities" and launched a strict examination of the case .

Stella Li's Response

BYD Executive Vice President Stella Li has forcefully rejected the environmental allegations. Speaking at an international conference in Belgrade, she stated: "This is an inaccurate assertion — we have already engaged legal counsel to address it, as we have acted appropriately" . Li insisted that BYD has complied with all environmental regulations at the Szeged factory and is cooperating fully with Hungarian authorities .

Labor Allegations and Fines

The environmental probe is not the only challenge facing BYD in Hungary. The factory has faced serious and well-documented labor-related controversies.

• China Labor Watch investigation (March 2026): The New York-based NGO interviewed 50 Chinese migrant workers at the Szeged construction site. Their report documented 7-day workweeks, 14-hour shifts, passport confiscation, debt bondage, and multiple indicators of forced labor . These findings were raised in the European Parliament — the first time a Chinese company has been addressed there on labor abuse allegations .

• Official government response: Hungarian authorities confirmed labor law violations involving three companies participating in the BYD factory construction. As of June 9, 2026, 18 labor inspections and 9 occupational safety investigations had been initiated, and enforcement actions were taken against AIM Construction Hungary Kft., Plusz Kéz Kft., and LÉVAI-SECURITY Kft. .

• Brazil parallel: This is not an isolated incident. In January 2026, BYD settled a separate forced labor case in Brazil, agreeing to pay approximately 40 million Brazilian reais (about $8 million) .

Broader European Production Plans

Despite these headwinds, BYD is pushing forward with its European production ambitions. The controversies, however, have contributed to significant delays in its timeline.

• Timeline for vehicle assembly: Trial production finally began in Szeged in February 2026 . Full vehicle assembly is now confirmed to start in Q4 2026 . This is roughly a year behind the original late-2025 schedule . Initial output will run below full capacity for the first two years .

• Investment size: The Szeged facility is a multi-billion-euro project, with reports suggesting investments of over €3 billion for the own facility and an additional €700 million for an R&D center in Budapest .

• Search for a second production site: Stella Li told Reuters in June 2026 that BYD is looking to take over an existing factory in southern Europe for its second assembly plant, with Spain on the shortlist . As a result, BYD has put its planned $1 billion plant in Türkiye on hold to prioritize ramping up production at the Hungary site . The company also plans to establish to support its growing vehicle output in the region .