Chinese automakers scour Europe for factories ahead of EU local content rules, says BYD adviser

Chinese automakers are actively searching for European factories to comply with upcoming EU local content rules for electric vehicles, according to BYD's European adviser Alfredo Altavilla. The adviser notes that BYD is particularly interested in Spain and France, as they offer simpler and more affordable options for refurbishing existing assembly plants.

Altavilla emphasizes the urgency of finding suitable factories, as the process must be expedited to meet the new regulations, which are expected to be introduced within the next year. Chinese manufacturers have already formed partnerships with European automakers to share production lines in underutilized plants, including examples like Leapmotor and Dongfeng with Stellantis, Geely with Ford, and Chery with a local partner.

BYD aims to fully own and refurbish an existing factory in Europe to accelerate production, and the company currently operates its first European passenger car plant in Hungary. The adviser expects BYD to eventually establish three assembly plants and one battery plant in Europe to support its growth and comply with EU rules. Italy has become a secondary option for BYD due to Stellantis' unwillingness to sell plants.