Chinese electric vehicle manufacturer BYD is close to deciding on the acquisition of an existing automotive manufacturing plant in Europe, with Spain and France emerging as the leading candidates, according to comments made by the company’s Special Adviser for Europe, Alfredo Altavilla, at the Reuters Automotive Europe conference in Frankfurt.
Altavilla said teams are currently evaluating potential sites and indicated that a final decision is expected soon.
“This week, we have two teams looking around in different jurisdictions, so we’re close,” Altavilla said, adding that the decision “needs to be made very soon.”
European Manufacturing Expansion
The proposed acquisition would become BYD’s second passenger vehicle production base in Europe.
The company’s first European factory is under construction in Szeged, Hungary, where equipment installation is continuing ahead of mass production expected to begin in the fourth quarter of 2026.
BYD’s previously announced US$1 billion manufacturing project in Turkey remains on hold, with Deputy Chief Executive Stella Li confirming that completing the Hungarian facility is currently the company’s priority.
Brownfield Strategy Gains Momentum
Rather than building a new factory from the ground up, BYD is pursuing a brownfield investment by acquiring an existing automotive plant.
Industry observers have pointed to underutilized manufacturing facilities across Southern Europe as potential candidates, particularly as several established automakers continue to operate below capacity.
BYD has previously acknowledged discussions with Stellantis regarding underused production assets, while other Chinese automakers have also explored acquiring European factories as they expand local manufacturing.
Sales Growth Drives Local Production
The company’s manufacturing push follows rapid growth in European sales.
BYD sold nearly 188,000 vehicles across Europe in 2025, representing a 270% increase from the previous year. Sales continued to accelerate during the first five months of 2026, surpassing 100,000 vehicles and putting the company on pace to exceed last year’s full-year total well before year-end.
Expanding production within Europe would strengthen BYD’s regional supply chain while supporting compliance with evolving European industrial and trade policies.
Altavilla also suggested that Southern European locations offer competitive advantages over higher-cost manufacturing regions, citing factors including production costs and factory utilization as the company finalizes its investment decision.