BYD Eyes Spain for Its Third European Factory
Europe’s electric vehicle landscape is about to gain a powerful new player. Chinese automaker BYD is considering building its third European manufacturing plant in Spain — a move that could turn the Mediterranean coast into one of the continent’s key hubs for EV production.
According to company insiders, BYD has shown strong interest in establishing the new facility in Spain. While no final decision has been made, the country’s combination of competitive labour costs and a robust renewable energy infrastructure makes it an attractive choice.
Construction of BYD’s first two European plants — in Hungary and Turkey — is already underway, with both expected to begin operations next year. If the Spanish project goes ahead, the nation would become a cornerstone of BYD’s plan to fully localize production for its European lineup within the next three years.
The road ahead, however, may not be entirely smooth. Each new facility must receive approval from Beijing, and rising trade tensions between China and the West could complicate the process. The European Union has already raised concerns over state subsidies that allow BYD to undercut local competitors, potentially leading to new tariff measures.
BYD’s strategy relies on its core strength: a fully vertically integrated production system that gives it control over everything from battery manufacturing to vehicle design. Should the Spanish plant come to fruition, it would mark not just another expansion — but a pivotal moment in the reshaping of Europe’s automotive landscape.
