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BYD Eyes Southern Europe Factory Takeover
10 Jun
Summary
- BYD is prioritizing acquiring an existing plant for its second European facility.
- Spain is a potential location, while a planned Turkish plant is on hold.
- Building EVs in Europe would help BYD circumvent EU tariffs on Chinese cars.
BYD, a leading Chinese electric vehicle manufacturer, is exploring the acquisition of an existing factory in Southern Europe for its second assembly plant on the continent. Executive vice president Stella Li indicated that taking over a pre-existing facility is the preferred approach. Spain is among the countries being considered for this significant expansion. This move is strategic, as producing vehicles within the EU could help BYD avoid proposed European Union tariffs on electric cars manufactured in China.
The company's primary focus remains on launching production at its first European plant, located in Hungary, by the fourth quarter of 2026. This Hungarian facility's operational start is about a year behind its initial schedule. Meanwhile, BYD has placed its planned assembly plant in Turkey on hold. The urgency to establish local production is driven by 'Made in Europe' rules expected to take effect, making the acquisition of existing sites more feasible than constructing new ones within the necessary timeframe.
