BYD is looking for an existing plant in Spain or France for its next European factory, a site it can quickly acquire and convert. That requirement has pushed Italy into backup status as the Chinese electric vehicle manufacturer searches for its second major site in the European Union.
Alfredo Altavilla, BYD’s special advisor for Europe, laid out the company’s approach: “We have to find something to buy now and refurbish it with relatively little money... quickly,” he told reporters in Turin. Speed is the priority. The company aims to avoid the delays of building a new facility and accelerate production by taking over a site it can adapt quickly. Reuters reported that Altavilla expects a decision on the location by the end of 2026, as competition grows and EU regulations change.
Reuters reported that BYD has already begun early-stage production at its first European passenger car plant in Szeged, Hungary, with mass manufacturing planned for later in 2026.
The strategy is about more than convenience. With the EU imposing tariffs on electric vehicles built outside its borders, Chinese manufacturers face pressure to establish local production. Industry reports note that the European Union has set a 10% base tariff on imported electric vehicles, plus an additional 17% compensatory duty specifically for BYD, making local manufacturing impressive for competitiveness. Leapmotor has already chosen Spain, setting up in Zaragoza and at Villaverde in Madrid. Geely is moving into Ford’s plant in Valencia. BYD also operates factories in Turkey and Hungary, but those sites alone do not meet its ambitions for the European market.
Altavilla named Spain and France as the most promising options because they offer “a simpler situation” for acquisition and conversion. Italy, once in the running, is now a backup. Stellantis, Italy’s only major automaker, is not selling any plants. “I can’t buy something that’s not for sale,” Altavilla said, pointing to the practical obstacle that shifted BYD’s attention. Reuters and other automotive outlets have reported that the focus on Spain and France reflects logistics and the readiness of available sites.
Altavilla, who joined BYD as an advisor in 2025 after roles at IVECO and FCA, also indicated that the company’s plans extend beyond a single new plant. To comply with European regulations and meet future demand, BYD envisions “three assembly plants and one battery plant” across Europe. Its immediate objective is to secure a second assembly site within the EU, focusing on facilities it can quickly repurpose. Statements cited by Reuters say this multi-site approach is intended to help BYD meet local content requirements and anticipated market growth.
Competition is intense. Altavilla described teams from various Chinese automakers searching Europe for suitable factories, sometimes running into one another in airport lounges as they pursue the same opportunities. The race is about more than location: it is about who can move fastest to secure a position in the market.
Spain’s rise as a hub for Chinese electric vehicle investment is already visible. As previously reported, other Chinese brands are also targeting Spanish sites to speed up their European expansion. Existing infrastructure has become a valuable asset in the electric vehicle sector.
BYD’s focus on acquiring and upgrading an operational plant reflects a shift in how global automakers approach European manufacturing. The emphasis is on speed and flexibility, with less risk. For Spain and France, the outcome is impressive: the country that can provide the right facility stands to gain jobs and investment, while taking a central role in Europe’s electric vehicle transition.
