BYD is planning to build four factories in Europe, including three vehicle assembly plants and one electric-vehicle battery plant, according to a senior executive speaking at an event in Turin, Italy. The move is aimed at meeting stricter localisation requirements and winning more customers in the region, as reported by Chinese outlet Gasgoo.
Alfredo Altavilla, a BYD advisor for Europe and former Fiat Chrysler executive, said the plan is not imminent but is necessary to achieve production targets while complying with European Union rules. “This is not something that will happen overnight, but it is clear that to reach the production volumes we have set, and to meet EU requirements, this is what we need to do,” he said.
BYD’s first European plant in Hungary is about to start large-scale production, and the company expects to confirm a second production site by the end of this year. Altavilla said BYD prefers to renovate existing factories rather than build new ones, as this can significantly shorten the time to start production.
Spain and France are currently the main candidates for the second site, according to Altavilla. Italy remains a possibility but is less likely to be chosen. “Italy is still Plan B. I care about the best conditions to ensure competitiveness. I hope to find them in Italy, but so far I haven’t,” he said.
Tariffs and localisation pressure
The EU has imposed tariffs on Chinese-made battery-electric vehicles (BEVs), and the proposed “Made in Europe” rules are expected to increase pressure on BYD to boost local production. BYD is in talks with European competitors and governments, and is exploring taking over underutilised plants in countries such as Spain, France, and Italy.
Earlier this year, BYD’s executive vice president for international business, Li Ke, told Bloomberg that the company has been seeking to acquire struggling traditional European car brands.
BYD’s overseas expansion comes amid a price war in China and rising fuel prices due to Middle East conflicts, which have revived interest in electric vehicles. In the first half of this year, BYD’s overseas revenue exceeded its China revenue for the first time.
Other Chinese automakers have also made deals with European partners to share idle production lines. Leapmotor and Dongfeng have production cooperation with Stellantis in Spain and France, Geely has a partnership with Ford in Spain, and Chery has taken over an old Nissan plant in Spain.
