BYD reportedly favours Spain for possible third European assembly plant

Core Viewpoint - BYD is considering Spain as the primary candidate for its third European car factory to enhance its production capacity and support Spain's goal of becoming a key electric vehicle manufacturing hub [1][2]. Group 1: Expansion Plans - BYD is looking to establish a Spanish assembly plant in addition to its planned facilities in Hungary and Turkey to accelerate sales growth in Europe [1]. - The company aims to manufacture all cars for the European market locally within three years [3]. Group 2: Factors Influencing Decision - Spain is favored due to its relatively low production costs and a clean energy network, making it an attractive option for expanding production capacity [2]. - The industrial framework and inexpensive electricity in Spain have been highlighted as significant advantages for BYD's expansion [2]. Group 3: Current Operations and Market Performance - BYD's sales in Europe surged by 280% in the first eight months of the year compared to the same period in 2024, driven by an expanded product range that includes plug-in hybrids [4]. - The company has reorganized its European operations, including hiring additional managers and expanding its dealership network [4]. Group 4: Investment Climate in Spain - Spain has attracted significant investment in the EV and battery manufacturing sector, including a €5 billion ($5.8 billion) plan initiated in 2020 to utilize EU pandemic recovery funds [5]. - The diplomatic and trade relations between Spain and China have strengthened, as evidenced by Spain's abstention in an EU vote on tariffs targeting Chinese-made EVs [5]. Group 5: Factory Developments - BYD's factory in Hungary is currently under construction, with mass production delayed until next year, while the Turkish plant is set to launch in 2026 [6].