BYD is eyeing further expansion across Europe and snapping up an existing car factory could be the answer.
The Chinese carmaker already has a car factory in the region – its plant in Szeged, Hungary, is expected to ramp up production during 2026 – but a second would allow it to expand in the European and UK markets at a far faster pace.
BYD’s special adviser for Europe, Alfredo Altavilla, said a decision on a so-called brownfield investment – the acquisition of an existing plant – was imminent, according to Automotive News Europe.
Speaking at the Reuters Automotive Europe conference in Frankfurt, Altavilla said: “The call needs to be made very soon.”
He added: “This week, we have two teams looking around in different jurisdictions, so we’re close.”
It's understood France and Spain are being considered, but there's a question mark over how competitive German sites could be.
BYD is just one of a handful of Chinese carmakers that are rushing to establish manufacturing bases in Europe in order to comply with the EU's new "Made in Europe" policy.
Chery and Nissan are discussing the possibility of the Chinese carmaker using spare capacity at Nissan's UK plant in Sunderland, while Leapmotor is expected to leverage its Stellantis partnership and use one of its sites in Madrid, Spain. Dongfeng also plans to build models at Stellantis’ Rennes factory from 2028, and SAIC is planning a factory in Galicia, Spain.
Manufacturing cars locally in Europe would also help Chinese brands reduce exposure to EU import tariffs, which start at 10% and can rise to 45% for some electric vehicle manufacturers.
BYD’s European growth has been rapid. According to market researcher Dataforce, its sales across the region rose 144% to 134,306 vehicles in the first five months of this year, following a 275% increase to 187,297 units last year.
The recently-launched BYD Dolphin G DM-i is the first BYD to be designed with Europe in mind and built at the company's new Hungary factory. I recently drove it – click here to see what I thought of it.
The Dolphin G DM-i is the first BYD to be designed for Europe and built in the region 
