BYD will move production of its new Dolphin Surf urban EV from China to its new factory in Hungary at the end of this year.
This will make BYD one of the first Chinese companies to build its cars in Europe and is in contrast to Leapmotor's recent decision to renege on its plan to build the European-market T03 in Poland.
BYD executive vice-president Stella Li said: "Our goal is for customers to think of BYD as a European brand."
The company now sells cars in 28 European countries, 12 of them being new to it this year.