BYD, China’s largest automaker, is reportedly favoring Spain as the location for its third electric vehicle manufacturing plant in Europe, seeking lower production and energy costs as it expands its continental footprint.
The move comes as the company advances its plans for two other European facilities. Production is expected to begin next year at a factory under construction in Hungary, and a second plant is slated for Turkey, targeting operation in 2026.
Spain is considered an “ideal” option due to its developed industrial infrastructure and a competitive energy system increasingly powered by renewable sources. Political and economic cooperation between Madrid and Beijing has also strengthened in recent years.
Alberto De Aza, BYD’s country manager for Spain and Portugal, told Italian Motor1 that Spain offers a favorable industrial and energy environment, along with lower energy costs compared to other European nations.
This potential selection follows reports that Germany, initially considered, was discarded due to high labor and energy supply expenses, according to Reuters.
BYD has not yet made an official decision regarding its third European factory and continues to explore various options. Any final agreement would require approval from Chinese regulatory authorities.
The company could announce its official choice by the end of the year.