BYD plans to establish three vehicle assembly plants and one battery factory in Europe to support sales growth and meet local manufacturing requirements. The company is currently launching production at its first European facility in Hungary.
The automaker expects to select its second assembly site by the end of 2026. The company prefers acquiring and refurbishing existing facilities over new construction. Spain and France are currently the leading candidates for the new site.
Italy remains a secondary option for the company. BYD is actively negotiating with European governments and automakers regarding the potential takeover of underutilized production facilities to secure competitive conditions.
Local manufacturing is becoming a priority due to additional EU tariffs on Chinese battery electric vehicles and potential future restrictions on hybrid imports. These measures increase the necessity of regional production.
BYD reported 1,162,260 vehicles sold overseas in the first eight months of 2026, marking an 85.72% increase year-on-year. The company has raised its 2026 overseas sales target to between 1.9 million and 2 million units.
