BYD is considering a second factory in France. It aims to have three plants in Europe eventually.
BYD is considering France as a possible location for its second European automobile factory. Stella Li, the company’s vice president, confirmed these plans during the Paris Motor Show. The Chinese manufacturer is taking into account factors such as competitive energy prices.
France is on a short list of locations that BYD is “examining very carefully.” However, Stella Li did not specify when a decision will be made or when the new plant could start production. It is also unclear which models would be produced there.
BYD’s first European automobile factory is being built in Hungary. The long-term plan is much larger, with the company aiming to establish three automobile factories and one battery plant in Europe to boost sales outside China and meet local production requirements.
BYD aims to employ over 40,000 people in Europe
Jobs are set to follow the factories. According to information published on October 12 by China’s Caixin news outlet, BYD’s employment in Europe is expected to exceed 40,000 people by 2030.
“BYD’s commitment to strengthening its presence in Europe is very firm, and it is a long-term strategy,” Li said during the Paris auto show. The scale of sales explains why the manufacturer does not want to rely solely on exports from China for its expansion. In September, BYD sold 179,877 passenger cars and pickups outside its home market, a 153.9% increase from the previous year. Exports from January to September 2026 reached 1,337,831 vehicles.
The French plant would shorten the supply chain and increase the share of local production, but for now we are talking about location analysis rather than a finalized investment. BYD has not disclosed the budget, production capacity, or timeline for the second factory.
China and the European Union Try to Calm the Car Dispute
BYD’s plans align with changes in trade relations between China and the European Union. During the second meeting of the Trade and Investment Dialogue mechanism, held on October 8-9, the parties agreed on 16 points regarding automotive trade. One of these relates to the trade in hybrids in accordance with World Trade Organization rules.
Discussions are also set to continue on individual price commitments by manufacturers and procedures related to the EU’s investigation into subsidies for Chinese electric vehicles. Technical consultations on the EU’s foreign subsidy regulation will also begin.
In January, China and the EU agreed on what both sides described as a “soft landing” for the subsidy dispute. The Union later published general guidelines regarding price commitments, but procedures for individual companies are still underway. Therefore, BYD can plan European factories, but the terms for selling Chinese EVs in the EU have not yet been finalized.
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