BYD Set To Build Factories In Europe

BYD is aggressively expanding into Europe with plans to build four factories, aiming to challenge legacy automakers and boost international sales as its domestic market growth slows.

Alfredo Altavilla, a former Fiat Chrysler executive and current advisor for BYD’s European operations, recently announced the company’s strategic objective to establish three vehicle assembly plants and one dedicated battery production facility within Europe.

BYD has begun trial production at its new Hungary factory and is scouting locations in Spain, France, and Italy for additional sites. To reach its European volume targets, the automaker plans to establish a total of three assembly plants and one battery facility, potentially acquiring underutilized existing factories.

According to Alfredo Altavilla, BYD intends to finalize the location for a second European manufacturing facility by the end of this year. Moving forward, the company must determine whether to prioritize the establishment of a third assembly plant or the construction of a dedicated local battery production facility.

BYD’s Hungarian facility is projected to reach an annual production capacity of 200,000 vehicles, with large-scale operations scheduled to commence between November and December. While the company previously announced plans for a 150,000-unit-per-year plant in Manisa, Turkey, intended to launch in late 2026, development at that site has currently been placed on indefinite hold.

Driven by a decline in domestic demand—highlighted by a 32.7 percent decrease in Chinese market sales to 1.505 million units this year—the automaker is increasingly prioritizing international expansion. As overseas deliveries continue to surge, BYD anticipates its global sales volume to reach between 1.9 million and 2.0 million vehicles by the end of 2026.

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