A potential assembly plant in Spain would mark a significant step in BYD’s European strategy and support the country’s ambition to become a major hub for electric vehicle (EV) manufacturing. One source noted that Spain appeals to BYD due to its relatively low production costs and strong clean energy infrastructure. Although the company has been exploring several European locations for its third factory, Spain’s emergence as a frontrunner has not been previously reported.
BYD’s country manager for Spain and Portugal, Alberto De Aza, said last month: “Spain would be an ideal location for further expansion of BYD’s European manufacturing footprint because of its industrial infrastructure and cheap electricity.” However, a third source indicated that no final decision has been made, and the company continues to evaluate other options. The final approval for the new plant, expected before the end of the year, will require authorization from Chinese regulators.
Earlier this year, BYD had also examined other European countries, including Germany, but internal discussions highlighted challenges such as higher labor and energy costs. Both BYD and Spain’s Industry Ministry declined to comment on the current status of negotiations.
BYD’s presence in Europe has grown rapidly, with sales in the region rising 280% in the first eight months of 2025 compared with the same period in 2024. The company’s growth has been supported by an expanded lineup that includes both fully electric and plug-in hybrid vehicles. In April, BYD had restructured its European operations to accelerate growth, hiring more managers and increasing its dealership network.
The company aims to produce all vehicles for the European market locally within three years, a move that would help reduce logistics costs and avoid potential EU tariffs on imported electric vehicles. Its Hungarian plant is currently under construction, though mass production has been delayed until next year, while the Turkish plant is scheduled to begin operations in 2026.
Spain, Europe’s second-largest automobile producer, has been actively promoting EV manufacturing through a €5 billion ($5.8 billion) incentive program launched in 2020, supported by European Union recovery funds. This initiative has already attracted major investments from global automakers such as Volkswagen, Chery, and CATL.
BYD’s growing partnership with Spain reflects strengthening economic ties between the two countries. As Europe’s EV market continues to expand, BYD’s investment strategy positions it to play a leading role in the region’s shift toward sustainable mobility and localized production.
