The world’s largest car carrier, BYD “Shenzhen,” departed from Haitong Terminal in Taicang Port, Jiangsu Province, China, on April 27, 2025, loaded with over 7,000 new energy commercial vehicles bound for Brazil. This monumental shipment underscores BYD’s expansion as a leading force in the electric vehicle market, overtaking Tesla in 2025.
However, alongside its business growth, BYD is facing serious allegations regarding labor practices at its factory in Hungary. According to a recent report by China Labor Watch (CLW), a non-profit watchdog based in New York, the company has been charged with maintaining poor working conditions for employees at its Hungarian site. The report indicates that contractors hiring for BYD’s factory have forced thousands of workers, primarily from China, to work excessively, often beyond 12 hours a day, seven days a week.
The report, which follows interviews with 50 workers and multiple site visits since October 2025, suggests that fear of job loss and withheld wages have kept workers from voicing concerns. CLW’s founder, Qiang Li, disclosed that serious injuries and at least one fatality have occurred at the site, alongside inadequate medical support for workers who often lack proper work visas and insurance coverage.
This situation marks a significant moment as it is the first time labor abuses connected to a Chinese-owned automotive business have emerged under the scrutiny of the European Parliament. Three members of the European Parliament have sought clarification from the European Commission regarding these claims, raising the stake for BYD amid its ambitions in the European market.
The contractor at the center of these allegations, AIM Construction Hungary, is affiliated with Jinjiang Construction Group, which has faced its own labor scandals. In December 2024, after a related incident in Brazil drew attention, BYD announced it had terminated its contract with Jinjiang’s Brazilian subsidiary. Yet the connection to another Jinjiang entity in Hungary raises questions about the oversight and ethical standards within BYD’s supply chains.
BYD’s factory in Szeged is one of five facilities the company has established in Hungary, intended to produce 300,000 vehicles annually once fully operational. As the electric vehicle market rises, BYD has already seen a rapid increase in its market share in Europe, with a 29,291 new vehicle registrations in just the early months of 2025. Despite facing hurdles such as heightened tariffs on Chinese electric cars in the EU, BYD’s growth trajectory remains robust.
While the Hungarian authorities have claimed to be investigating the allegations, the political repercussions are evident. In Brazil, labor issues have seen Luiz Felipe Brandao de Mello removed from his position for recommending BYD be placed on a blacklist severely limiting the company’s future access to financial resources.
As BYD continues to navigate the dual challenges of expanding its global footprint while addressing serious labor concerns, the coming months will be critical in determining both its operational integrity and public perception in the international community. With its bold ambitions, the eyes of the world are firmly fixed on how it resolves these significant labor issues.
Original Source: https://www.cnbc.com/2026/04/28/byd-eu-parliament-labor-abuse-hungary-factory-investigation.html
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Publish Date: 2026-04-28 07:11:00
