BYD’s hit by scandal: Labor abuse allegations at Hungary factory

Chinese electric vehicle giant BYD is facing growing scrutiny in the European Union after allegations of labor abuses at its factory construction site in Hungary were raised in the European Parliament.

According to a report by watchdog China Labor Watch, contractors involved in building the plant in Szeged allegedly required workers to endure extremely long shifts, in some cases exceeding 12 hours a day across seven-day workweeks. The group also claimed overcrowded conditions and insufficient staffing at the site, based on interviews with workers and multiple site visits, News.Az reports, citing CNBC.

The findings were reportedly shared with EU officials, leading several members of the European Parliament to formally question the European Commission about the situation earlier this month.

The allegations mark the first time claims of labor abuse linked to a Chinese-owned automotive manufacturer operating in the EU have been brought before the Commission.

One contractor named in the report is linked to a construction group previously accused of labor violations at a BYD project in Brazil, where authorities had earlier described working conditions as resembling “slavery-like” practices. BYD had previously said it cut ties with that Brazilian contractor following the controversy.

The Hungary case has also raised concerns about worker welfare, visa arrangements, and alleged pressure tactics to retain laborers on-site during construction. The report claims some workers were promised benefits such as travel reimbursements, while others faced delayed or withheld payments.

Hungarian authorities have reportedly acknowledged awareness of the allegations and said they have taken steps to investigate the matter within their jurisdiction.

BYD, now the world’s largest electric vehicle manufacturer, has rapidly expanded in Europe as it builds production capacity to serve growing regional demand. The company has established multiple facilities in Hungary as part of its broader push into the European market.

Neither BYD nor the contractors involved have publicly responded to the latest allegations. EU institutions have also not issued an official statement beyond parliamentary inquiries as the situation continues to develop.

News.Az 

By Aysel Mammadzada