Recently, an international organization dedicated to safeguarding the rights and interests of Chinese workers has raised allegations against BYD, accusing the company of forced labor practices at its factory construction site in Szeged, Hungary. The accusations encompass a range of issues, including unpaid wages and wage deductions, excessive overtime hours, and restrictions preventing workers from returning home. Hungarian authorities have launched an investigation into these matters; however, BYD has yet to issue a detailed response addressing the specific allegations.

Previously, BYD had announced a substantial investment of USD 4.5 billion in Hungary, with the aim of establishing its first passenger car factory in Europe. The company's plans include producing 300,000 electric vehicles annually and setting up an electric bus factory. Nevertheless, BYD's expansion into Europe has encountered obstacles, as the European Union (EU) has initiated an investigation into the project on the grounds of 'unfair subsidies,' potentially leading to the imposition of restrictions. Should the labor allegations be proven true, they would further compound BYD's challenges in the European market.