BYD wants 3 car factories and 1 battery plant in Europe. Spain and France ahead of Italy
BYD plans to eventually have three car assembly plants and one battery factory in Europe to boost sales and comply with EU regulations. This roadmap was outlined on September 17 in Turin by Alfredo Altavilla, BYD’s Europe advisor and former Fiat Chrysler manager. For drivers in Poland, it’s a clear signal: the Chinese company no longer wants to simply import cars into the EU but aims to establish a solid manufacturing base there.
BYD’s first European factory is set to be built in Hungary. The location for the second assembly plant is expected to be decided by the end of 2026, and the company prefers acquiring an existing factory and modernizing it rather than building everything from scratch. This is sensible as it’s faster and usually cheaper.
The second factory will be completed by the end of the year, with Spain and France being the top contenders.
According to Altavilla, BYD is in talks with European manufacturers and governments about acquiring underutilized automobile factories. Spain and France are on the shortlist, while Italy remains a possibility but more as a backup plan.
A direct quote was even given: “Italy remains a plan B.” In other words, Italians are currently considered a fallback option, with BYD looking for locations offering the best package of conditions—specifically regarding costs, government support, workforce, and procedural speed.
This is not coincidental. The European Union has imposed additional tariffs on electric vehicles produced in China, and there are also renewed discussions about “Made in Europe” rules. If a manufacturer wants to sell large volumes without being trapped by tariffs, local production becomes almost essential.
Pressure from tariffs is also increasing on hybrids, and BYD’s ambitions are growing accordingly.
The second thread is equally interesting. The Financial Times previously reported that the EU is seeking a negotiated import limit on Chinese hybrids, and if no agreement is reached, tariffs could rise. This extends trade pressure from BEVs to hybrids as well, further pushing Chinese brands to establish their own factories in Europe.
BYD has a strong case to make. In the first 8 months of 2026, the company’s overseas sales increased by 85.72 percent year-on-year to 1,162,260 vehicles. August 2026 alone saw a record 189,466 cars sold, which is 134.45 percent more than the previous year. Moreover, this accounted for 43.03 percent of the company’s total monthly sales. This figure refers to all markets outside China, not just Europe.
The management has also raised its target for 2026 to 1.9–2.0 million vehicles outside China, with a goal of over 2.5 million for 2027. Additionally, the Denza brand is expanding in Europe with new showrooms in Turin and Paris.
On paper, the plan is very ambitious, but in BYD’s case, sales volume is starting to support it. The question is no longer whether they will expand further into Europe, but where they will build their next facility. Which country do you think will host BYD’s second factory: Spain, France, or Italy?
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