BYD is racing to establish a new manufacturing base in Europe, but time constraints mean building from scratch is off the table. Executive Vice President Stella Li reveals the company is searching for an abandoned factory to accelerate its entry and avoid new EU trade barriers.
Stella Li, Executive Vice President of BYD, has made it clear: the Chinese electric vehicle giant is not waiting around to build a new factory in Europe. Instead, BYD is actively seeking an abandoned or existing plant to fast-track its expansion on the continent, a move driven by both regulatory pressure and fierce competition.
BYD, which recently overtook Tesla as the world’s top seller of electric cars, is already preparing to open a new facility in Hungary later this year. But with the European Union imposing fresh tariffs on Chinese-made vehicles and tightening requirements for local manufacturing, the company needs a second European base—and it needs it fast.
Regulatory Pressure and Local Incentives
The urgency is not just about market share. From 2024, the EU has introduced higher tariffs on vehicles imported from China, making local production essential for brands like BYD. At the same time, Brussels is pushing for stricter local content rules, and national incentives—such as Spain’s Plan Auto+—offer greater subsidies for electric cars built within Europe. The location of manufacturing now directly impacts both pricing and consumer demand.
“We would prefer to take over an existing plant,” Li told Reuters during the launch of the new BYD Dolphin G DM-i in Berlin. She did not specify a location, but confirmed the search is focused on southern Europe. Alfredo Altavilla, BYD’s senior advisor for Europe, echoed the urgency: “There is no time to start a plant from scratch today. The priority is to find a ready-built factory, take it over, and adapt it.”
Spain’s Strategic Appeal
Spain has emerged as a leading candidate for BYD’s next move. As Europe’s second-largest car producer after Germany, Spain offers competitive labor costs, a robust supplier network, and a strategic position for exports to the UK, France, and beyond. The country’s openness to foreign brands—Spanish consumers are less attached to domestic marques than their German, Italian, or French counterparts—also makes it an attractive entry point for Chinese automakers.
However, the pool of available factories is limited. Ford’s Almussafes plant is already committed to Geely, and Stellantis has transferred its Villaverde facility to Leapmotor, with future models planned for production there from 2028. This scarcity of suitable sites could complicate BYD’s plans, despite Spain’s many advantages.
Race Against the Clock
For BYD, the clock is ticking. The company’s strategy hinges on quickly adapting an existing facility to meet both regulatory deadlines and market demand. With new EU rules on local content looming, any delay could mean missing out on incentives and facing higher tariffs—potentially undermining BYD’s aggressive European ambitions.
As the search continues, BYD’s approach highlights a broader shift among Chinese automakers: speed and flexibility are now as important as scale. The outcome will not only shape BYD’s future in Europe but could also signal how other global manufacturers respond to the continent’s evolving industrial landscape.
