BERLIN, June 10 - Chinese electric vehicle manufacturer BYD said it is pursuing an existing factory in southern Europe for its second assembly plant on the continent, with Spain among the countries on its shortlist. The company signalled a preference for acquiring and refurbishing an existing facility rather than constructing a new greenfield site.
"We would prefer to take over an existing plant," executive vice president Stella Li told reporters in Berlin during the European launch of the Dolphin G, a compact electric model. Li did not identify any other specific countries on BYD's shortlist or provide a timetable for a final site decision.
Li reiterated that BYD's immediate priority remains starting production at its first European plant in Hungary in the fourth quarter, a schedule the company now says is about a year later than initially planned. Separately, BYD has placed a planned manufacturing project in Turkey on hold.
BYD's sales in Europe have expanded rapidly. The company reported that deliveries grew 270% last year to almost 188,000 vehicles, and that sales have more than doubled in the year to May to exceed 100,000 units. Producing vehicles within Europe would allow BYD to avoid European Union tariffs applied to Chinese-made electric cars, a factor that is informing its strategy.
Europe's auto sector has long faced excess manufacturing capacity, particularly in western Europe where labour and energy costs tend to be higher. That context has led some incumbent manufacturers to consider commercial arrangements for underused facilities: Stellantis, for example, has publicly pursued deals to lease space in its underutilised European factories to Chinese automakers including Leapmotor and Dongfeng.
Alfredo Altavilla, a senior adviser to BYD in Europe, said Chinese automakers are actively scouting existing factories on the continent because proposed EU rules on minimum local content for cars - the so-called 'Made in Europe' requirements - could come into force before newly built plants complete construction and begin production.
"There is no time to start a greenfield plant today," Altavilla told reporters. "All you can do is find a brownfield, take it over and refurbish." This view frames BYD's current approach of prioritising brownfield opportunities over new builds in order to meet regulatory and market timing constraints.
Sectors impacted: automotive manufacturing, European industrial real estate, trade and tariff policy.