BYD is narrowing its search for a second European plant to Spain and France, with a decision expected by year-end. The Chinese carmaker wants to strengthen its position in a market where local rules and homegrown production matter more than ever.
Spain was once in the running for BYD’s first European plant, which went to Hungary after a tough contest in late 2023. Spain remains a contender for future projects. Alfredo Altavilla, who advises BYD’s European operations, put it plainly: “France and Spain are on the shortlist for a BYD plant in Europe. Personally, I am interested in the best competitive conditions, and I would like to find them in Italy, but I have not found them yet.”
Altavilla’s comments show how urgent and complicated BYD’s search has become. The company wants “turnkey” sites: existing factories, including abandoned ones, that can be brought back into operation quickly. The EU’s Industrial Acceleration Law says new investments must be operational within three years, making it almost impossible to build a new plant from scratch. “We need to acquire turnkey factories, even abandoned ones that can be reopened quickly. That’s why we are looking for production sites,” Altavilla said.
BYD’s plans extend beyond one new plant: the company wants three assembly plants and a battery factory across Europe. Its Hungarian plant in Szeged began trial runs in January and entered official production in April. Full assembly is targeted for the fourth quarter. The first phase targets 150,000 cars a year, with a goal of doubling that to 300,000 by 2027 or 2028. Reuters reported that mass production was postponed from late 2025 to the fourth quarter of 2026.
The competition for BYD’s investment is fierce. Germany, Poland and France all tried to secure the first plant. Spain nearly won, but Hungary prevailed. Now, with BYD’s Turkish project on hold, attention has shifted to Spain and France for the next major site. Italy, despite Altavilla’s personal ties, remains a backup option.
Spain has a lot riding on the decision. Landing BYD’s factory would boost local industry and strengthen Spain’s role in Europe’s shift to electric cars. The Spanish government and regional leaders know what’s at stake as the sector faces growing pressure to build locally and follow EU rules. The race for BYD’s investment echoes the case of Wallbox, which decided to move all production to Barcelona, as reported earlier.
For BYD, the choice between Spain and France will hinge on rules and costs, with logistics also shaping the decision. The company’s growth plan is bold but practical: it wants speed and compliance, with efficiency built into the plan. As Europe’s electric car market matures, success will depend on keeping pace with changing rules and buyer preferences. BYD’s next step will show how global carmakers are responding to Europe’s shifting field, while Spain’s position as a top contender points to what the country could gain or lose in the months ahead.
