
A second worker died at BYD's EV factory construction site in Hungary. The contractor was fined for safety violations. BYD's European production timeline faces new scrutiny.
A second worker has died at the construction site of BYD's electric vehicle factory in Szeged, Hungary, CNBC reported. The fatality occurred on June 18. Paramedics attempted resuscitation but failed, Hungary's National Ambulance Service said. Local media reported the worker was struck by a lorry. Authorities are investigating.
The death follows a separate fatality at the same site in February. Earlier this month, BYD executive vice president Stella Li denied allegations of labor abuse and told CNBC the automaker welcomed labor inspectors. The company did not respond to requests for comment on the latest incident.
AIM Construction Hungary Ltd., a subsidiary of the construction firm linked to a 2024 labor scandal at BYD's factory in Brazil, was fined 34.5 million forints ($110,350) over occupational security issues, the Csongrád-Csanád County Government Office said. The office also warned AIM over late employee registration, violations of working time rules, and formal defects in employment contracts. Two other firms were fined or warned for labor supervision failures.
New York-based China Labor Watch published a report earlier this year alleging forced labor at the Szeged site, including seven-day work weeks and withheld wages. BYD has denied those claims.
The factory is BYD's first passenger EV plant in Europe. The company began moving production machinery into the site in January. Full production is expected in the third quarter of 2026, Li said earlier.
For investors tracking BYD's European push, the labor incidents add a layer of regulatory risk. Hungarian authorities are already investigating the latest death. The contractor's fine and the pattern of violations could invite deeper scrutiny from EU labor regulators. Any delay in the construction or certification process would push back BYD's timeline for selling made-in-Europe EVs, a key part of its strategy to avoid EU tariffs on Chinese imports.
The simple read is a negative headline that may not move the stock much on its own. The better market read is that cumulative labor issues at a flagship European site raise the odds of operational friction. BYD has not commented on whether the incident will affect its production schedule.
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