BYD’s plan to buy a major carmaker is gathering pace, with Europe, the US and Japan in its sights
BYD’s plan to acquire a car manufacturer moved into public view on 13 March, when the group’s leadership confirmed it was studying the possibility of buying a major legacy brand in Europe, the United States or Japan. No formal talks are under way, but the signal is loud enough. China’s fast growing car giant is no longer talking only about exports. It is talking about a direct route into the world’s biggest markets.
BYD is not chasing a trophy, it wants a shorter route to market
In BYD’s view, traditional carmakers are being squeezed by two parallel cost burdens at once, internal combustion models on one side and electric cars on the other. That is exactly why the company is looking at possible takeover targets. BYD believes its long focus on hybrids and electric vehicles gives it a simpler structure and a quicker way to react.
Translated into plain language, the logic is rather cold blooded. While older manufacturers pay twice for the transition, BYD is exploring whether it can buy an established name, a factory footprint and a dealer network in one move.
Canada is starting to look like the next proving ground
Canada also surfaced in the same discussion. BYD is studying the possibility of building a factory there and would prefer full control rather than a joint venture. That idea did not appear out of nowhere. Earlier this year, the Canadian government said it would allow up to 49,000 Chinese built electric cars into the country annually under a 6.1 per cent tariff. Previously, a 100 per cent surtax had all but sealed that door shut.
The gateway to the North American market is not exactly wide open, but someone has at least left it ajar.
BYD’s European expansion is already becoming real
At the same time, BYD is not limiting itself to talk of a possible acquisition. According to Reuters, the company is already preparing European production through its plant in Hungary, while its factory in Turkey is also expected to start operating this year. Last autumn, Stella Li told Reuters that BYD wants all electric cars destined for Europe to be built locally by 2028 at the latest.
The pressure is already visible in the numbers. In January, BYD registrations in the European Union rose to 13,982 cars, lifting its market share to 1.7 per cent at a time when the overall EU car market shrank by 3.9 per cent.
Pressure at home is making exports feel less like ambition and more like necessity
The reason for the urgency is not difficult to spot. Reuters reported on 1 March that BYD’s February sales fell 41.1 per cent year on year, marking a sixth consecutive monthly decline. The company is now looking beyond China for momentum and is targeting 1.3 million overseas sales in 2026.
When the domestic market stops applauding every month, global expansion starts to look less like swagger and more like self preservation.
This story is not only about one possible deal. It shows how quickly power is shifting in the car industry. A few years ago, Chinese manufacturers came to Europe looking for credibility and distribution. Now one of them is openly weighing a major acquisition while established brands wrestle with margins, electrification and sluggish demand all at once. The car business loves grand slogans, but this time the loudest message is a simple one. The company with the money, the technology and the patience is also the one developing the biggest appetite.
