BYD eyes idle European plants for regional manufacturing strategy

BYD is exploring the possibility of taking over underused car plants in Europe as it looks to expand its manufacturing base and strengthen its foothold in the region’s electric vehicle (EV) market.

The Chinese carmaker has held discussions with Stellantis and other manufacturers about facilities that are no longer operating at full capacity, according to comments made by BYD Executive Vice President Stella Li at the Financial Times Future of the Car summit in London. Italy is among the countries under consideration, although the company is understood to be reviewing options more broadly across Europe.

Stella suggested BYD would prefer to take direct control of any factory it acquires rather than operate through a joint venture. While the group is willing to cooperate with other companies on areas such as battery technology and component supply, it appears to favour independent management of its production sites.

That stance sets it apart from Stellantis, which has chosen a different path in its relationship with Chinese EV firm Leapmotor. The two companies recently announced plans to increase manufacturing activity in Spain, including production of a new Opel electric C-SUV and an expanded role for Leapmotor’s B10. (https://dealerfloor.co.za/electric-vehicles/leapmotor-to-assist-with-opel-electric-vehicles)

BYD’s interest in existing European factories comes at a time when competition in China remains fierce, prompting domestic manufacturers to seek growth overseas. Building vehicles inside Europe would also help the company reduce logistical costs, improve delivery times and respond more quickly to local demand.

The company is already laying the groundwork for that shift. BYD has started trial production at its plant in Hungary and is developing another facility in Turkey, expected to begin operations by the end of 2026.

If BYD does secure an agreement for a European factory, it would mark another sign that Chinese EV makers are moving beyond exports and becoming more deeply embedded in the continent’s industrial landscape.

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