- BYD is negotiating with European automakers to acquire underutilized vehicle plants.
- Chinese EV manufacturers are accelerating production expansion across Europe.
BYD is in discussions with several European automakers regarding the possible acquisition of underutilized vehicle manufacturing facilities across the region. The company confirmed that negotiations are underway with Stellantis as well as additional manufacturers as part of its strategy to strengthen production capabilities in Europe. The talks come at a time when global automotive companies are reassessing manufacturing capacity while Chinese electric vehicle brands continue expanding their international presence.
Speaking during the Financial Times Future of the Car conference held in London, BYD executive vice president Stella Li stated that the company is evaluating opportunities to take control of available automotive plants in countries including Italy. According to Li, the company is particularly interested in facilities that already possess manufacturing infrastructure and unused production capacity. BYD also indicated that it prefers to independently operate any acquired plants instead of pursuing joint venture arrangements with local partners.
The discussions follow Stellantis’ recently announced strategy to deepen cooperation with Leapmotor in the European market. The automotive group revealed plans to introduce an additional production line at its Zaragoza facility in Spain for manufacturing a new Opel electric SUV alongside the Leapmotor B10 model. Stellantis also plans to transfer ownership of its Villaverde manufacturing plant in Madrid to Leapmotor International’s Spanish subsidiary as part of the expanded collaboration.
Key European Manufacturing Expansion Activities
| Company | Expansion Activity | Location |
|---|---|---|
| BYD | Factory acquisition discussions and EV expansion | Europe |
| Stellantis & Leapmotor | New EV production line and plant transfer | Spain |
| Geely Auto | Reported acquisition of Ford assembly line | Spain |
Chinese automotive manufacturers have accelerated overseas expansion efforts amid intense pricing pressure in their domestic market. Companies including BYD are increasingly focusing on Europe to secure long-term growth opportunities in the electric vehicle sector. Consumer demand for EVs has also shown renewed momentum as fuel prices increased following geopolitical tensions in the Middle East, encouraging automakers to strengthen regional manufacturing and supply chain capabilities.
Geely Auto was also recently linked to plans involving the acquisition of a Ford assembly line in Spain as part of its European EV expansion strategy. The growing interest from Chinese manufacturers in European industrial assets highlights the increasing importance of localized production for improving logistics, reducing tariffs, and supporting faster market penetration within the region.
BYD has already established a passenger vehicle manufacturing facility in Hungary, where trial production activities have commenced. The company additionally announced plans for another production base in Turkey. Last month, BYD introduced its premium Denza brand in Paris and showcased ultra-fast charging technologies designed to strengthen its premium EV positioning in Europe. The Denza Z9GT and Denza D9 models have already entered the European market as the company broadens its international product portfolio.
Frequently Asked Questions
Why is BYD looking to acquire factories in Europe?
BYD is exploring factory acquisitions in Europe to expand its manufacturing footprint and utilize existing spare production capacity more efficiently. The company aims to strengthen its regional EV operations while reducing logistical complexity and improving market responsiveness. Acquiring operational facilities can also help BYD accelerate production timelines and support long-term growth plans in Europe. The strategy aligns with rising EV demand, increasing localization requirements, and intensifying competition among global electric vehicle manufacturers operating across the European automotive market.
Which European countries are involved in BYD’s expansion plans?
BYD’s ongoing expansion strategy includes activities in several European countries including Italy, Hungary, Spain, and Turkey. The company is discussing possible factory acquisitions in Italy and other regions while its Hungary passenger vehicle facility has already entered trial production. Spain has emerged as a key manufacturing hub due to recent Stellantis and Leapmotor developments. Turkey is also part of BYD’s broader production network strategy as the automaker seeks stronger regional manufacturing capabilities and improved supply chain integration across the European electric vehicle market.
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