Chinese Automakers Scout Europe for Production Sites

Chinese automakers are intensifying their search for European production sites, with a strong preference for acquiring and refurbishing existing assembly plants over building new ones. This strategic move aims to accelerate their manufacturing presence in the EU, driven by upcoming 'Made in Europe' rules expected as soon as next year, which will mandate minimum local content for electric vehicles sold within the bloc.

BYD, China's largest electric vehicle manufacturer, is prioritizing speed and cost-efficiency. Its European advisor, Alfredo Altavilla, indicated that Spain and France present the most 'actionable' options, emphasizing the need to find a suitable site for purchase and renovation with minimal investment. BYD is currently establishing its first European passenger car plant in Hungary and anticipates selecting a location for a second facility by the end of this year.

Altavilla noted that securing a second European plant is crucial for BYD's growth ambitions and compliance with EU regulations. Looking further ahead, the company envisions a network of three assembly plants and one battery plant on the continent. While Spain and France remain primary targets, Italy is considered a 'plan B' due to the unavailability of Stellantis plants for acquisition.