BYD chooses Spain for its third European assembly plant
- China's largest carmaker, BYD, has announced plans to build a third assembly plant in Europe before 2030, following its existing plants in Hungary (Szeged) and Turkey (Manisa), and has chosen Spain as the future location. Relations between Spain and China have recently improved. For example, Spain abstained from voting in the European Union last year on tariffs imposed on electric vehicles produced in China and imported into Europe.
- The announcement of a third BYD assembly plant in Europe reflects the carmaker's genuine optimism. By 2030, this will give it a production capacity of 450,000 cars per year on the continent (150,000 cars per year for each plant), whereas it will only sell 150,000 in Europe in 2025, even in the most optimistic scenario. However, it is true that BYD is experiencing one of the strongest growth rates in the market, with a 300% increase in the first nine months of 2025. Nevertheless, it would need to triple its sales in Europe by 2030 to fully utilize its three European assembly plants.
- BYD's strategy is to produce all its electric cars sold in Europe locally by 2030, thus avoiding European tariffs and duties. BYD's factories in Hungary and Turkey are expected to begin production in 2026, a few months behind the initial schedule. However, BYD’s announcements should be taken with caution, as the Chinese carmaker’s statements regarding selected sites, production volumes, and launch plans may be subject to change.
- Note: BYD's sales growth in September 2025 is due to strong seasonal demand in the UK and the increased supply of BYD vehicles in Europe, including the Sealion 7.