BYD is evaluating Spain and France as potential locations for its second European passenger vehicle plant, as the Chinese automaker accelerates its localization strategy across the region, Reuters reported. Speaking at an industry conference, BYD’s special adviser for Europe, Alfredo Altavilla, said Chinese automakers are rapidly expanding their market presence in Europe. He added that BYD is assessing a “brownfield” strategy, acquiring or leasing existing vehicle plants for conversion rather than building new factories from scratch. BYD’s presence at a past overseas auto show. The approach would allow BYD to integrate more quickly into Europe’s established manufacturing base while shortening construction and production lead times. Spain and France have entered the shortlist for the company’s second European vehicle plant. A final decision is expected in the near future. The move comes as local manufacturing has become the preferred route for Chinese EV makers seeking to expand in Europe following the European Union’s anti-subsidy tariffs on Chinese-made electric vehicles. Production within the EU offers stronger market access and greater long-term strategic value. BYD has already confirmed that its plant in Szeged, Hungary, will begin vehicle production in the fourth quarter of 2026. The facility is viewed as the company’s gateway into the EU manufacturing ecosystem. A BYD automated manufacturing plant. Meanwhile, its planned factory project in Turkey has been put on hold, shifting more resources toward production inside the European Union. Altavilla also challenged the widely held view that Chinese automakers would enter Europe through minority investments combined with technology partnerships. He said the competitive landscape is proving far tougher than expected, describing it not as a model of coexistence but as “brutal competition.” BYD’s European sales reached 180K vehicles in 2025, up 270% from a year earlier. In 2026, the company has continued to gain momentum across key European markets including Germany and the United Kingdom.