BYD is close to picking Spain or France for its second European plant. The decision, expected by year-end, could shake up the electric car market and bring new competition to the region.
BYD is about to make a big call that could change how electric cars are built in Europe. The Chinese carmaker is down to two options for its next EU factory: Spain or France. The company plans to decide before the year is out. BYD is moving fast, trying to lock in its place 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. That factory ended up in Hungary after a tough contest in late 2023. Still, Spain’s strong position keeps it in play 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.”
BYD is seeking to acquire and modernize an existing factory in Europe, rather than build a new one from scratch, to accelerate its local production timeline.
Altavilla’s comments show how urgent and complicated BYD’s search has become. The company is not starting from zero. It wants “turnkey” sites—factories that already exist, even if they are abandoned, so they can get up and running fast. This is because the EU’s Industrial Acceleration Law says new investments must be working within three years. That rule makes building a new plant from scratch almost impossible. “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 go beyond just one new plant. The company wants three assembly plants and a battery factory across Europe. The first step is already happening. BYD’s Hungarian plant in Szeged started trial runs in January, moved to official production in April, and aims for full assembly by the fourth quarter. The first phase targets 150,000 cars a year, with a goal to double that to 300,000 by 2027 or 2028.
The fight for BYD’s investment is tough. Germany, Poland, and France all tried to land the first plant. Spain almost got it, but Hungary won out. Now, with BYD’s Turkish project on hold, the focus is on Spain and France for the next big site. Italy, even with Altavilla’s personal ties, is still just a backup plan.
According to Reuters, BYD’s first European plant in Szeged, Hungary, has entered the launch phase, but the start of mass production has been postponed from late 2025 to the fourth quarter of 2026. This delay reflects the challenges of meeting EU localization requirements and adapting to evolving industrial policy in the region.
Spain has a lot riding on this. 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, especially as the sector faces more pressure to build locally and follow EU rules. The race for BYD’s investment is similar to what happened with Wallbox, which decided to move all production to Barcelona, as reported earlier.
For BYD, the choice between Spain and France will come down to rules, logistics, and costs. The company’s growth plan is bold but practical. It wants speed, compliance, and efficiency—not just national pride. As Europe’s electric car market grows up, the winners will be those who can keep up with changing rules and what buyers want. BYD’s next step will show how global carmakers handle Europe’s shifting landscape. Spain’s spot as a top contender shows how much the country could gain—or lose—in the months ahead.
