BYD needs its second factory in Europe, and Spain is one of the favorites, but there is a key condition.

18/09/2026 12:30

Updated to

18/09/2026 12:30

With Europe imposing tariffs on electric cars manufactured outside the EU, Chinese manufacturers are desperately seeking to produce in the Old Continent: Leapmotor will do so in Spain, in Villaverde and Madrid as well as in Zaragoza. Geely will use Ford’s factory in Valencia, while BYD has built a factory in Turkey—which, though not part of Europe, has its advantages, as Hyundai knows well—and another in Hungary. But this is not enough given the Chinese giant’s plans for the Old Continent.

Alfredo Altavilla, BYD’s special advisor for Europe, made this clear during the launch of a Denza dealership—the luxury brand under BYD in Europe; we’ve already tested its best car—saying, “France and Spain are among the main candidates”—and favorites—for the second factory the Chinese giant plans to operate in the EU, according to Reuters.

Spain is the favorite, but there’s a key condition...

Altavilla himself has admitted that for a future in Europe and to meet European standards, BYD would need “three car assembly plants and one battery plant.” But for now, in planning its second factory in the EU, this executive has made it clear that Spain is one of the preferred locations. It’s alongside France because “they present a simpler situation.”

For BYD’s advisor, the key condition is that the Chinese giant can acquire 100% ownership of an existing plant and refurbish it—rather than building from scratch—to maximize its production in Europe: “We need to find something to buy now and refurbish it with relatively little money... quickly,” he explained to the media in Turin.

Which has pushed Italy to a “plan B”

That key condition of being able to purchase and renovate an existing factory has turned Italy, which was once among BYD’s main targets in Europe, into a “Plan B,” said Altavilla.

Why? Stellantis, the only major automobile manufacturer in Italy, is unwilling to sell any of its plants. “I can’t buy something that’s not for sale,” explained Altavilla.

BYD isn’t the only Chinese manufacturer seeking this key condition

BYD’s European advisor explained in Turin that the company is not the only Chinese manufacturer seeking a factory in Europe: “We have a very large team that continuously conducts feasibility studies for all the facilities we are considering,” he said, but they are not alone...

Altavilla himself admits that “I am constantly visiting factories across Europe,” but he also noted that he has met executives from competitors in airport VIP lounges... who are pursuing the same goal: “At the airports, we all run into someone like that.”