By Gergely Szakacs

DEBRECEN, Hungary (Reuters) -China poses a “very significant” competitive challenge to German carmakers, the head of luxury carmaker BMW’s new Hungarian plant said on Wednesday, with Chinese rival BYD soon to start production in the country.

Under right-wing Prime Minister Viktor Orban, Hungary has become an important trade and investment partner for China, in contrast with some other European Union nations considering becoming less dependent on the world’s second-largest economy.

BMW said it would start series production of its iX3 electric model at a plant in the eastern Hungarian town of Debrecen from the end of October, becoming the third major German brand to enter Hungary after Audi and Mercedes-Benz.

“China constitutes a very significant challenge, all of us c

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