Overview
Chinese electric‑vehicle manufacturer BYD is actively seeking to acquire an existing manufacturing facility in southern Europe for its second assembly plant on the continent. Spain has been identified as one of the countries under consideration, although the company has not disclosed any other specific locations or the timeline for a final decision.
Executive Commentary
During a press briefing in Berlin, coinciding with the European launch of the Dolphin G compact electric car, Executive Vice President Stella Li stated that BYD would prefer to take over an existing plant rather than build a greenfield facility. Li did not provide details on additional candidate countries or when a location would be selected.
First European Plant Update
Earlier in the week, Li informed Reuters that BYD’s primary priority remains commencing production at its inaugural European plant in Hungary. The start of production is now targeted for the fourth quarter of 2026, representing roughly a one‑year delay from the original schedule. The company has also placed its planned plant in Turkey on hold.
Sales Performance
BYD reported that its European sales surged 270 % last year, reaching almost 188,000 vehicles. Through May 2026, sales have more than doubled year‑to‑date, surpassing 100,000 units.
Tariff Considerations
Establishing manufacturing capacity within Europe would enable BYD to circumvent European Union tariffs imposed on Chinese‑made electric cars, enhancing price competitiveness in the region.