Spain Poised to Host BYD’s Third European Electric Car Factory

Chinese automaker BYD is leaning toward Spain for its third European plant, following factories in Hungary and Turkey, sources told Reuters. The new facility would strengthen BYD’s footprint across Europe as demand for electric vehicles (EVs) continues to surge.

Spain’s low manufacturing costs, clean energy network, and strong industrial base make it a leading contender. A final decision, expected by year-end, requires approval from Chinese regulators.

BYD aims to produce all its European EVs locally within three years to avoid EU tariffs and speed delivery times. The company’s European sales have soared 280% this year, driven by the success of its plug-in hybrid and fully electric models.

Spain, Europe’s second-largest car producer, has attracted billions in EV investments from automakers including Volkswagen, Chery, and CATL, using EU pandemic recovery funds.

The project underscores growing trade cooperation between China and Spain, especially as some European nations tighten scrutiny of Chinese EV imports.