BYD seeks to expand European manufacturing footprint

BYD is seeking to expand its European footprint by establishing three vehicle assembly plants and one battery unit. The company views local production as essential to sustain growth and comply with upcoming European Union regulations.

Having already begun production at its first European facility in Szeged, Hungary, BYD aims to select a location for its second plant by the end of the year. Analysts suggest Spain and France are the most viable options due to simpler regulatory or logistical environments, with the primary deciding factor being the cost of renovating existing facilities.

Unlike some Chinese competitors that share idle production lines with established manufacturers, BYD’s strategy is to fully own and renovate existing plants rather than building from scratch. This has led to intense competition for available industrial assets across the continent. While companies like Leapmotor, Dongfeng, and Geely have secured agreements to use existing lines, BYD has indefinitely postponed its planned factory project in Manisa, Turkey.