BYD plans to build three vehicle assembly plants and one battery factory in Europe over the long term to support growing overseas sales while responding to the European Union’s requirements around localized production, according to Bloomberg on Sept. 17. BYD Europe adviser Alfredo Altavilla confirmed the plan while attending a Denza dealership event in Turin. The company has said that, over the longer term, three assembly plants and one battery plant would be needed to support its planned volumes while complying with European regulations. BYD’s first European vehicle plant is already in Hungary and has entered the production phase. BYD’s Hungary plant Altavilla said BYD expects to decide on the location of its second European manufacturing site by the end of 2026. Rather than building a new plant from scratch, BYD prefers to acquire existing European automotive factories with underutilized capacity and refurbish them for production. BYD is currently in talks with European automakers and governments in several countries. France and Spain are among the leading candidates, while Italy remains a backup option for the second plant. Italy remains on the broader list of potential locations, but Altavilla said it is currently unlikely to become the site of BYD’s second European plant. BYD had previously assessed the possibility of taking over plants operated by Stellantis, including facilities associated with Maserati. BYD Dolphin G DM-i Altavilla said some Italian plants were not available for such a transaction, while others had already been emptied and could not meet production requirements without substantial redevelopment. As the EU tightens trade restrictions on Chinese-made vehicles, the latest discussions have expanded beyond battery electric vehicles to hybrids. Localized production has become a necessary consideration for more Chinese automakers seeking entry into Europe. Chinese carmakers including Geely, Leapmotor and Chery are also pursuing local manufacturing via partnerships, acquisitions and existing European production assets. BYD’s localization push in Europe is also linked to the rapid growth of its overseas business. In the first half of 2026, BYD’s overseas sales reached about 790,000 vehicles, up 68% year over year, with its operations spanning more than 120 countries and regions. BYD Sealion 7 The company’s overseas revenue reached RMB 181.268 billion ($26.973 billion) during the same period. This surpassed domestic-market revenue of RMB 163.547 billion ($24.335 billion) for the first time and accounting for 52.57% of total revenue. BYD’s capacity expansion is not limited to Europe. On Sept. 3, the company officially opened its plant in Subang, Indonesia, with planned annual production capacity of 150,000 vehicles. At the same time, BYD has raised its 2026 overseas sales target from the previous 1.5 million vehicles to 1.9 million-2 million vehicles.