BYD plans three assembly plants and one battery factory in Europe

BYD wants three car assembly plants and one battery factory in Europe eventually. Alfredo Altavilla, the group's European adviser and a former head of Fiat Chrysler, laid out the plan to journalists in Turin. Bloomberg and Reuters both quoted him. The expansion will take time, but Altavilla said the factories will in the end be necessary to meet sales targets while also satisfying EU production requirements.

Spain and France in the lead

BYD wants to decide on its second European assembly plant by the end of 2026. The company favours taking over an existing factory and modernising it rather than building from scratch. Spain and France are named among the preferred locations. Italy remains a candidate but with a smaller chance, and Altavilla described that option plainly as a "plan B". BYD is holding talks with European manufacturers and governments about taking over underused car plants.

The market background is unambiguous. According to ACEA data cited by heise autos, BYD's share of the EU new-car market rose this year from 0.9 to 2.4 percent. Chinese manufacturers have been steadily increasing sales despite the tariffs introduced on Chinese electric cars in 2024. Local assembly lets them avoid tariff costs and at the same time meet EU requirements on the share of production located on site.

Why it also matters for Poland

The decision on the location of the second factory matters for the entire European supply chain, as does the ruling on the battery plant. In practice it means choosing between two strategies. One is a quick takeover of ready infrastructure, which is cheaper and faster but depends on the consent of the owner and the unions. The other is building from the ground up, which is more expensive but gives full control over the production line. Altavilla indicated that the group leans towards the first option.

For European manufacturers it is a double signal. The Chinese competitor intends to move part of its production into the EU, which makes the tariff dispute a less effective tool for protecting the market. At the same time it could revive demand for unused manufacturing capacity that today weighs on the balance sheets of European groups.

The calendar matters too. The decision on the second plant comes at a moment when the European Commission is considering a countervailing investigation into Chinese plug-in hybrids, and some manufacturers already use negotiated price commitments instead of paying duties. The stronger the tariff pressure grows, the more sense production inside the Union makes for BYD. The choice of location is therefore not only an investment decision but also part of its pricing strategy for the coming years.