BYD denies abuses, but second death at its European factory reignites labor scandal

A second worker died during construction work at BYD’s factory in Szeged, southern Hungary, intensifying scrutiny over working conditions at the Chinese automaker’s biggest project in Europe. The accident occurred on June 18, about four months after the first death recorded at the site.

According to Hungary’s National Ambulance Service, rescue teams, including a helicopter, were mobilized, but the victim — a Chinese citizen — did not resist. According to the Csongrád-Csanád County Police, the worker was allegedly hit by a truck as he passed between the vehicle and a loader as the driver resumed his journey. Authorities are investigating the circumstances of the accident. The first fatality, in February, had occurred during a crane lifting operation.

The case comes a few weeks after BYD Executive Vice President Stella Li denied allegations of labor abuses at the site and said that the company normally receives inspections from authorities. Contacted by CNBC, the automaker did not comment on the new death; In a statement to the Hungarian press, she said she was “deeply shocked” and said she was collaborating with the authorities.

The investigation also involves AIM Construction Hungary, a subsidiary of the construction company linked to the BYD labor scandal in Brazil, in 2024, when workers were rescued in conditions analogous to slavery in Camaçari (BA). The company was fined 34.5 million guilders (about R$ 570 thousand) for failures in occupational safety and warned for other irregularities, such as the late registration of employees. Two other service providers received sanctions for infractions related to the registration of workers and the supervision of activities.

Earlier this year, the New York-based NGO China Labor Watch published a report with allegations of forced labor at the site, including seven-day-a-week workdays and withholding of wages. According to the entity, there have been occasional advances – such as the reduction of the shift to six days – but workers still report surveillance of communications and punishments for those who expose the conditions of the place.

The Szeged plant will be BYD’s first plant in Europe and is a centerpiece of the company’s strategy to escape tariffs imposed by the European Union on Chinese electric cars. The company faces a 17% surcharge on electric cars imported from China, in addition to the standard tariff of 10% for automobiles – a barrier that local production intends to circumvent. According to the automaker, scale production is scheduled for the third quarter of 2026.