Chinese electric vehicle giant BYD is close to finalising plans for a second manufacturing facility in Europe as it accelerates its regional expansion. Speaking at the Reuters Automotive Europe conference in Frankfurt, BYD’s special adviser for Europe, Alfredo Altavilla, said a decision is expected soon, with Spain and France emerging as the leading candidates. The company is reportedly exploring the acquisition of an existing automobile factory rather than building a new facility from scratch.

The proposed investment would become BYD’s second European production site after its Hungary plant, where manufacturing is scheduled to begin later this year. The move comes as the European Union promotes greater local manufacturing through “Made in Europe” initiatives, while traditional automakers continue to grapple with overcapacity, rising costs, and increased competition from Chinese electric vehicle manufacturers.

BYD’s expansion follows strong sales growth in Europe, where deliveries surged 270% last year and more than doubled during the first five months of 2026. Altavilla argued that European automakers should focus on improving competitiveness instead of trying to resist Chinese rivals, describing the industry’s restructuring efforts as a necessary wake-up call. He also dismissed suggestions that Chinese manufacturers would be willing to share their latest technology through minority joint ventures.

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