BYD Advances European Factory Plans, Spain and France Among Candidates

en.Wedoany.com Reported - Alfredo Altavilla, Special Advisor for the European market of BYD Company Limited, revealed at the Reuters Automotive Europe Conference held in Frankfurt on July 1, 2026, that BYD is accelerating its production capacity layout in Europe, adding Spain and France to the candidate list for its second vehicle assembly plant in the region, with a final decision expected to be announced soon.

This investment is a "brownfield investment," involving the acquisition of existing factories from traditional automakers rather than building new capacity from scratch. Acquiring an existing plant will give BYD a second European vehicle production base in addition to its factory in Hungary. BYD's production facility in Hungary is scheduled to start operations in the fourth quarter of 2026.

Altavilla disclosed that Spain and France are currently the most promising locations, with two teams conducting on-site inspections in different regions this week, indicating that the decision-making process has entered its final stage. In contrast, he believes that German factories are less competitive, and the underutilization of local manufacturing capacity makes them relatively less attractive.

The site selection is closely tied to EU trade policies. Chinese automakers are currently seeking production bases in Europe to avoid EU import tariffs. Reports indicate that the European Commission plans to impose additional tariffs on hybrid vehicles to close potential policy loopholes. Meanwhile, the EU is promoting "Made in EU" rules, further accelerating the pace of localized production for Chinese automakers in Europe.

Founded in 1995 and headquartered in Shenzhen, Guangdong Province, China, BYD is a global leader in new energy vehicles and power batteries. In 2025, BYD's global sales of new energy vehicles reached 4.27 million units, a year-on-year increase of 41.26%. Currently, BYD has established multiple production bases worldwide, and the selection of its second European factory is a crucial step in the company's globalization strategy.

BYD's "brownfield investment" model of acquiring existing factories allows it to leverage idle capacity from traditional European automakers, shorten the construction cycle, and help revitalize local industrial assets. Both Spain and France have well-established automotive industrial bases. If one of these countries is ultimately chosen as the location for the second factory, it will further strengthen BYD's localized supply capabilities in the European market.