18:15 01-07-2026

BYD picks a second European plant: Spain and France in the race, Germany out of favour

BYD wants to buy an existing European factory rather than build one from scratch. Spain and France lead the shortlist; Germany looks less attractive on costs.

BYD no longer looks like a guest in Europe carrying a batch of EVs. The Chinese company is close to choosing a second production site in the region and is considering buying a ready-made car plant from a traditional automaker. No building from scratch, no years of negotiating a greenfield site. Just buying what already stands and getting assembly running faster.

BYD’s senior European adviser Alfredo Altavilla told the Reuters Automotive Europe conference in Frankfurt that a decision must be taken “very soon.” Spain and France were named among the candidates. Germany, judging by his words, looks less attractive: expensive manufacturing base, underused capacity, heavy cost structure. Said with almost no diplomacy. Then again, the auto industry isn’t exactly a gentle place right now.

BYD’s logic is clear. Production in Hungary is due to start in the fourth quarter, but one plant isn’t enough for a European push. The brand’s European sales grew 270% last year to almost 188,000 vehicles, and in the first five months of 2026 they have already topped 100,000 units. At that pace, local assembly stops being a nice gesture and becomes a shield against tariffs, logistics risks and the coming Made in Europe rules.

For the old-guard groups this is an uncomfortable fork in the road. They have plants, people, unions, underused capacity, and the need to spend billions at the same time on batteries, software and new platforms. Chinese brands come with fresh models, aggressive pricing and a hunger to secure European residency fast. Altavilla put it bluntly: “Fighting this invasion is bloody useless.” He added that treating the Chinese as junior partners in joint ventures who would hand over their newest technology is an illusion: “This is not coexistence. This is a brutal takeover.”

Volkswagen isn’t mentioned here by accident. Reuters has previously reported on what could be the group’s largest-ever restructuring, including job cuts and factory closures in Germany. For BYD it’s a backdrop that almost feels like a gift: while some are slashing costs, others are picking where to buy their ticket into European manufacturing. A small detail — and a very painful one.

Spain and France look more logical than Germany not just on cost. Stellantis already has experience filling European sites through Chinese ties: Dongfeng, Leapmotor, joint projects, an attempt to use existing infrastructure instead of waiting for a new investment cycle. BYD could go a similar route, but with a far stronger brand and line-up of its own.

For the European buyer this could mean a faster arrival of affordable BYDs with local assembly, less exposure to duties and, potentially, a denser dealer network. For Renault, Peugeot, Volkswagen, Opel, Citroen, Skoda and even Tesla — another rival that doesn’t ask for time to warm up. It’s already selling.

BYD is making the move Europe fears most: it’s stopping being a “Chinese import” and trying on the role of a local manufacturer. After that, the argument will no longer be about where the car comes from, but about its price, its technology and its speed to market.