Production of BMW's fully electric Neue Klasse will start at the plant in 2025. Over 1,000 people will work at the base.

BMW board member for production Milan Nedeljkovic said the plant is "state-of-the-art in terms of flexibility, sustainability, and digitalization" and will play a "key role" in the transformation to electric mobility for both BMW and its production network.

By building up further capacities in Europe, BMW said it is strengthening the balance of production volumes between the American, Chinese, and European markets.

Minister of Foreign Affairs and Trade Péter Szijjártó said BMW's investment in Hungary shows the success of the country's economic policy.

"Through the hard work of recent years, we have succeeded in creating the most competitive investment environment in Europe in Hungary, based on political stability, an excellent Hungarian workforce, and the lowest taxes on labor in Europe," he added.

Szijjártó said the new plant would turn out 150,000 vehicles a year.

He noted that before BMW Group chairman Oliver Zipse took the top spot at the company, he had headed BMW's delegation negotiating the terms of its investment in Debrecen.

He added that Hungary will become the only country in Europe, besides Germany, where all three premium German carmakers have plants.

Nedeljkovic and Szijjártó were joined at the ceremony by BMW plant director Hans-Peter Kemser and Debrecen mayor László Papp.