Spain emerges as frontrunner for BYD’s third European plant
China’s top automaker BYD is considering Spain as the leading candidate for its third car manufacturing plant in Europe.
The new assembly plant would join BYD’s planned factories in Hungary and Türkiye, strengthening its foothold in Europe and supporting Spain’s ambitions to become a key electric vehicle (EV) production hub, News.az reports, citing Reuters.
One source said Spain was favored due to its low manufacturing costs and clean energy network. Although BYD has been exploring several locations for its next factory, Spain’s frontrunner status had not been previously reported.
A final decision — expected by the end of 2025 — will need approval from Chinese regulators, a third source cautioned, noting that other countries are still under consideration.
BYD’s Spain and Portugal manager, Alberto De Aza, told Reuters last month that Spain offers “ideal conditions” for expansion, citing its industrial infrastructure and affordable electricity.
Earlier reports said BYD also evaluated Germany, but concerns over high labor and energy costs reduced its appeal.
Both BYD and Spain’s Industry Ministry declined to comment.
BYD aims to produce all cars sold in Europe locally within three years. Its sales in Europe rose 280% in the first eight months of 2025 compared with the same period in 2024, boosted by a wider lineup of plug-in hybrids and fully electric vehicles.
Ties between Spain and China have strengthened in recent years. Spain abstained from an EU vote on tariffs for Chinese-made EVs, while China privately discouraged automakers from investing in countries supporting those tariffs.
Spain, Europe’s second-largest car producer, has attracted major EV investments from Volkswagen, Chery, and CATL since launching a €5 billion incentive plan in 2020 using EU pandemic recovery funds.
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