BYD is evaluating sites for its second and third European factories, with Spain among the leading candidates. The Chinese automaker, a major player in electric and plug-in hybrid vehicles, has yet to make a final choice. A Spanish plant would signal a shift in the region’s automotive sector.
Alongside building a new facility, BYD is considering acquiring an existing plant in Spain. Executive vice president Stella Li confirmed at the IAA Transportation show in Hannover that this approach could speed up the company’s timeline and sidestep some challenges of greenfield construction. Reuters reports that BYD is prioritizing the acquisition and repurposing of existing factories in Europe. The company’s European advisor, Alfredo Altavilla, told Bloomberg that its long-term vision includes three assembly plants and a battery plant in Europe. He said the expansion is necessary for BYD to meet its production goals and comply with European regulations, though it will take time.
BYD’s European presence began with its first plant in Szeged, Hungary, while a project in Turkey remains on hold. The company expects to select its next manufacturing site before the end of the year. Industry sources cited by Reuters name Spain and France as the leading candidates for the next European plant, with Italy as a backup. The strategy reflects efforts to comply with EU local content rules and support long-term growth in the region.
If BYD chooses Spain, it will join several Chinese automakers setting up production in the country. Chery has launched operations in Barcelona’s Zona Franca, assembling vehicles under the Omoda and Jaecoo brands and planning to revive the Ebro marque. SAIC Motor, which owns MG, has announced a €200 million investment to assemble cars in Ferrol, Galicia. Geely, which controls Volvo and Lynk & Co., has partnered with Ford to jointly manage the Almusafes plant in Valencia, targeting five models and up to 500,000 units annually by 2028. Leapmotor, majority-owned by Stellantis, will use Stellantis’s Spanish plants in Figueruelas and Madrid for its own production. The historic Santana brand is also returning in Linares, Jaén, through a partnership with BAIC.
Globally, BYD has sold more than 14 million vehicles and operates in 112 countries. Its experience as a battery manufacturer since 1995 gives it an advantage in managing its supply chain as it competes with Tesla for the top spot in global electric vehicle sales. Last year, BYD increased sales by 25 percent.
For Spain, BYD’s arrival would bring jobs and investment. Local assembly would help Chinese automakers avoid high tariffs on vehicles imported from China, making production in Spain a strategic move. The country’s expanding role as a manufacturing hub is already reshaping the European auto industry, as detailed in this recent report.
BYD’s final decision is still pending, but its search for a Spanish site reflects the country’s growing role in electric vehicle production. Chinese investment is accelerating change in Spain’s automotive sector, and BYD’s next step could further strengthen the country’s position in Europe’s electric vehicle industry.
