BYD Plans Four European Factories as It Expands Local EV Production

BYD plans to establish three vehicle assembly plants and one battery factory in Europe over the long term as it expands regional sales and adapts to European manufacturing requirements.

The company expects to select its second European assembly site by the end of 2026, with Spain and France among the preferred locations and existing factories favored over building new facilities.

Spain and France emerge as leading candidates

BYD European adviser Alfredo Altavilla outlined the company’s manufacturing plans to reporters in Turin on Wednesday. Altavilla, a former Fiat Chrysler executive, said the eventual European footprint will be needed to support BYD’s sales targets while helping the company comply with European regulations.

For its second assembly facility, BYD prefers acquiring and refurbishing an existing factory rather than constructing a new plant. The automaker is speaking with European manufacturers and governments about potentially taking over underused automotive facilities, according to CNEV Post.

Spain and France are among the locations being considered, while Italy remains another possibility. Altavilla described Italy as a “plan B” as BYD searches for competitive conditions for its next European factory.

BYD has already begun establishing local manufacturing capacity in Europe, with production starting at its first European plant in Hungary.

The push for regional production comes as Chinese automakers face additional trade barriers in Europe. The European Union has imposed additional tariffs on China-made battery electric vehicles, while proposed “Made in Europe” rules could encourage manufacturers to increase local investment.

The EU is also seeking a negotiated limit on imports of China-made hybrid vehicles. If an agreement cannot be reached, tariffs could increase, according to the source.

Overseas sales drive BYD’s expansion

BYD’s growing international business is providing another reason for the company to expand production outside China. The automaker sold 1,162,260 vehicles in overseas markets during the first eight months of 2026, an 85.72% increase from the same period last year, according to data compiled by CnEVPost.

August overseas sales reached a record 189,466 vehicles, up 134.45% year over year and representing 43.03% of BYD’s total monthly sales. Those figures include every overseas market and are not specific to Europe.

BYD management has raised its 2026 overseas sales guidance to between 1.9 million and 2 million vehicles and is targeting more than 2.5 million overseas sales in 2027, according to a September 7 Deutsche Bank research note.

The company is also expanding its premium Denza brand in Europe. Altavilla attended the opening of a Denza showroom in Turin, while the brand opened another location in Paris.

For BYD, the planned European manufacturing network would give the company additional local production capacity as overseas sales grow and trade requirements increasingly shape how Chinese automakers serve the European market.

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