Chinese electric vehicle manufacturer BYD is considering the establishment of a third car assembly plant in Spain to serve its European market, according to a recent Reuters report citing industry sources. The move would bolster the company’s goal of locally producing all vehicles sold in Europe within three years, a strategy designed to circumvent European Union import tariffs.
Spain has emerged as a preferred location due to its competitive manufacturing costs and robust clean energy infrastructure. Alberto De Aza, BYD’s regional manager for Spain and Portugal, told Reuters that Spain’s industrial ecosystem and relatively low-cost electricity make it an appealing site for further expansion of the company’s European production network.
Currently, BYD is preparing to launch operations at a passenger vehicle factory in Hungary, scheduled to begin production later this year. Additionally, the company signed an investment cooperation agreement with the Turkish government in mid-2024 to develop a new energy vehicle production base with an investment of around $1 billion, aiming to start output by the end of 2026.
While Spain is under serious consideration, company representatives have indicated that no final decision has been made and other countries remain in the running. The ultimate choice is expected by the end of the year, subject to approval from Chinese regulatory authorities.
The potential Spanish plant aligns with broader trends in Spain’s diplomatic and commercial relations with China, which have strengthened in recent years. Notably, Spain abstained from a vote on proposed EU tariffs on Chinese-built electric vehicles. Securing local production would enhance BYD’s competitiveness in Europe by mitigating exposure to trade barriers.
Source: CNEV Post
