BYD negotiates for empty European car plants to boost local production

13 May 2026

The era of shipping electric cars across the ocean from China to Europe is hitting a wall of high taxes and political tension. To solve this, BYD, the world's largest producer of EVs, is looking for a shortcut. Instead of building new factories from the ground up, the company wants to move into the buildings its competitors are leaving behind. BYD is already in talks with several European automakers, including Stellantis, to take over factories that are currently sitting idle.

Stella Li, the Executive Vice President of BYD, confirmed on May 13 that the company is actively hunting for space. The goal is simple: find existing factories that are not being used and turn them into BYD production hubs. Italy is at the top of their list for evaluation. BYD wants to use local capacity that is already there - a much faster way to start building cars than starting with a flat piece of dirt in a new country.

Stellantis is a natural partner for these talks because the giant automotive group has a lot of extra space. At the moment, Stellantis operates around 20 vehicle assembly plants across Europe, but they are under a lot of pressure to cut costs. The company has already said it is open to selling or sharing some of its production lines to reduce the financial weight of keeping so many buildings open. For BYD, a "used" factory is a bargain; for Stellantis, it is one less bill to pay.

There is a catch to how BYD wants to work, though. Many companies like to form partnerships, but BYD prefers to keep things simple. Stella Li noted that the company wants to run these facilities independently. They do not want the traditional joint-venture structure where two companies share the steering wheel. BYD wants to own the process from start to finish, ensuring their specific way of building electric cars remains unchanged by local corporate traditions.

This is a huge shift in how Chinese brands approach the European market. In the past, the strategy was to build the cars in China and export them. Now, that plan is too expensive. The European Union is raising trade barriers and tariffs on imported EVs. By building the cars inside Europe, BYD can bypass these taxes entirely. It also makes the brand look more like a local player and less like an outsider, which helps with public perception.

BYD is not waiting for Stellantis to make a deal, either. They are already busy elsewhere. Construction is underway for a BYD factory in Hungary, and the company has firm plans to set up a second European plant in Türkiye. They are also watching their competitors. Earlier this month, Stellantis signed a deal with Leapmotor to produce EVs at Fiat and Peugeot plants in Spain. BYD does not want to fall behind in this race for European soil.

The demand for electric vehicles justifies the rush. The latest market data shows that European registrations for EVs jumped by 27% in April compared to the same time last year. This means around 400,000 units were registered in just one month. Drivers are moving away from gasoline as oil prices stay high and governments offer more support for clean energy. Chinese brands are the ones catching this wave, now making up 22% of the European market.

The scale of BYD is hard to ignore. In the first four months of this year, the BYD Group sold 1,021,600 vehicles. Out of that massive number, 454,300 were sold outside of China. April was a strong month, with overseas sales reaching a record 134,500 units. With numbers like these, BYD is a dominant force that needs more room to grow. Taking over old factories in Italy or elsewhere is just the logical next step in the plan to become a household name in Europe.

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