Automotive News Europe — 2026-07-01
Automotive Industry
BYD is close to a decision on taking over an existing European auto plant to speed up its expansion in the region, a senior adviser said.
“The call needs to be made very soon,” Alfredo Altavilla, BYD’s special adviser for Europe, told the Reuters Automotive Europe conference in Frankfurt on July 1.
Chinese automakers are moving quickly to secure European factory space before new European Union rules go into effect that could make it far harder to invest. The moves could reshape the bloc’s industrial footprint and cement the presence of Chinese brands in Europe.
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Experts and executives say the sudden wave of deals is partly connected to the proposed Industrial Accelerator Act (IAA), an EU measure that aims to preserve Europe’s industrial base by imposing conditions on direct foreign investment and Made-in-Europe content rules.
Chinese automakers would also benefit by avoiding EU tariffs on imports that start at 10 percent and go up to 45 percent for electric vehicles for certain brands.
Recent announcements include:
Chery and Nissan exploring the possibility of Nissan building the Chinese company’s cars in its factory in Sunderland, England;
Leapmotor planning to build at least one model in Stellantis’ Madrid factory;
Dongfeng building models in a Stellantis plant in Rennes, France, starting in 2028;
SAIC planning to build a factory in Galicia, Spain. It’s scheduled to start production in 2028.
Altavilla said Spain and France were candidates for so-called brownfield investments, involving the acquisition of an existing factory, with a decision expected soon.
“This week, we have two teams looking around in different jurisdictions, so we’re close,” he said, questioning the competitiveness of German manufacturing sites, which are struggling with underutilization.
His comments come as established automakers seek ways to address overcapacity while investing heavily in product development and technology such as batteries and software.
BYD’s five-month sales in Europe increased 144 percent to 134,306 vehicles after rising 275 percent to 187,297 last year, according to market researcher Dataforce.
Fighting China’s Europe push is ‘useless’
Taking over an existing plant would give BYD a second European assembly site after Hungary, where production is due to begin in the fourth quarter, underscoring Chinese automakers’ push into the European market.
“Fighting that invasion is bloody useless,” Altavilla said.
He criticized the view that Chinese automakers entering Europe would be willing to take minority stakes in joint ventures while providing their latest technology, as proposed in the draft of the IAA.
“This is not coexistence,” he said. “This is brutal violence.”