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Chinese EV Makers Race for European Factory Sites
17 Sep
Summary
- Automakers seek existing plants for faster EU production.
- Spain and France are top options for BYD's expansion.
- EU local content rules are driving the European factory search.
Chinese automakers are intensifying their search for existing European car assembly plants to quickly establish production bases. This push is driven by upcoming EU local content rules, expected as soon as next year, which will mandate minimum local content for electric vehicles sold in the bloc.
BYD, China's largest electric vehicle maker, sees Spain and France as the most viable locations for its expansion due to the relative simplicity and cost-effectiveness of refurbishing acquired sites. BYD's European adviser, Alfredo Altavilla, noted that rivals' executives are frequently encountered during this scouting process in airport lounges across Europe.
BYD is currently establishing its first European passenger car plant in Hungary and aims to select a site for a second European facility by the end of this year. Looking ahead, BYD plans to operate three assembly plants and one battery plant in Europe to support its growth and comply with EU regulations. While other countries remain under consideration, Italy has become a 'plan B' as its sole major automaker is reportedly unwilling to sell any plants.
Several Chinese manufacturers have already secured deals to share production lines at underutilized European plants owned by legacy automakers in Spain and France. These include partnerships with Stellantis and Ford, demonstrating a growing trend of Chinese companies seeking manufacturing footprints within the EU.
