Chinese EV Makers Scramble for European Factories Ahead of EU Rules, BYD Adviser Says

Chinese electric vehicle manufacturers are accelerating their search for production sites across Europe, aiming to acquire and refurbish existing factories to comply with anticipated European Union local content rules. The competitive hunt for facilities was highlighted by Alfredo Altavilla, a European adviser for leading Chinese EV maker BYD, in comments to Reuters.

The Race for Local Production

Altavilla described a competitive environment where executives from rival Chinese firms frequently cross paths while scouting locations. "In airports we all bump into each other," he said, underscoring the urgency of the search.

The primary strategy for these automakers is to find and purchase existing car assembly plants. This approach allows for a much faster start to production compared to building a new factory from scratch. "We have to find something to buy now and restore it with relatively little money... quickly," Altavilla stated.

BYD's Expansion Strategy

For BYD, China's largest EV maker, Spain and France remain the "most actionable" options for its second European factory, with a site selection expected by the end of the year, according to Altavilla. The company is already in the initial stages of production at its first European passenger car plant in Hungary.

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Looking ahead, BYD's ambition is to eventually operate three assembly plants and one battery plant in Europe to support its growth and meet local regulations. Unlike some rivals who have struck production-sharing deals, such as Leapmotor with Stellantis, BYD intends to fully own and refurbish its own factories. Altavilla noted that Italy is currently a "plan B" because Stellantis, the country's sole major automaker, is unwilling to sell any of its plants.

Navigating 'Made in Europe' Rules

The push to establish a manufacturing footprint inside the EU is a direct response to upcoming 'Made in Europe' regulations. Brussels is currently drafting these rules, which are expected to be introduced as soon as next year.

These regulations will likely set minimum local content limits for electric vehicles sold within the bloc. For non-EU automakers, establishing local production is a critical strategic move to ensure continued market access and mitigate the impact of potential new trade barriers or compliance costs.