BYD Faces EU Parliamentary Scrutiny Over Alleged Labor Abuses in Hungary

BYD has become the first Chinese automotive firm to face formal scrutiny within the European Parliament regarding labor practices at its European production facilities. The investigation follows a report by China Labor Watch (CLW), which alleges systemic abuses at the company's plant in Szeged, Hungary. The report claims that contractors employed thousands of workers on grueling schedules, including seven-day work weeks with shifts exceeding 12 hours. This development comes as BYD aggressively expands its European footprint to bypass tariffs on Chinese-made EVs and capture a larger share of the regional market. CLW's findings, based on interviews with 50 workers, highlight inadequate medical insurance and safety lapses. Hungary's National Ambulance Service confirmed 12 emergency calls to the site since February 1, including one fatality. The report specifically names AIM Construction Hungary, a subsidiary of Jinjiang Construction Group, which was previously implicated in conditions described as 'analogous to slavery' at a BYD site in Brazil. Despite these allegations, BYD's growth in Europe remains rapid. New registrations in the EU more than doubled in the first two months of the year to 29,291 units, securing a 1.8% market share. The Seal U model notably ranked third in January registrations. The scrutiny arrives at a critical juncture as the EU seeks to localize production to mitigate reliance on imports. Any formal sanctions or regulatory penalties resulting from these labor allegations could complicate BYD's strategic pivot toward European manufacturing.