Chinese EV Makers Scout European Plants to Meet EU Rules

Chinese electric vehicle manufacturers are scouting existing assembly plants across Europe to establish local production footprints. This move anticipates the introduction of European Union Made in Europe rules, expected as early as next year, which will mandate minimum local content limits for electric vehicles sold within the bloc.

While companies such as Leapmotor, Dongfeng, and Geely have pursued production-sharing agreements with legacy automakers like Stellantis and Ford, BYD is pursuing a strategy of full ownership. The company aims to buy and refurbish existing facilities to accelerate its localization efforts. BYD currently has an initial production stage underway in Hungary and plans to select a second site by the end of the year, with a long-term goal of operating three assembly plants and one battery plant in Europe.

European adviser Alfredo Altavilla has identified Spain and France as the most actionable options for BYD due to simpler conditions. Italy remains a secondary option because Stellantis is unwilling to sell its plants. Altavilla noted that he is constantly visiting factories across the continent to find viable acquisitions, stating, "I cannot buy something that is not for sale."