BYD is exploring opportunities to take over underused factory capacity in Europe as it accelerates its overseas expansion. Executive vice president Stella Li said the company is speaking with Stellantis and other automakers, while BYD’s international sales continue to climb sharply, led by strong demand in Europe and the UK.
BYD is looking for ways to expand in Europe by taking over underused factory capacity from legacy automakers, according to a new report. Executive vice president Stella Li said the Chinese EV maker is in discussions with Stellantis and several other companies about potential plant deals.
Li made the comments during an interview with Bloomberg at the Financial Times Future of the Car conference in London on Wednesday. Her remarks underline how aggressively BYD is pursuing overseas growth as competition intensifies in China.
BYD wants existing European plants, not greenfield expansion
Li said the company is searching for “any available plant in Europe” that has spare capacity. The goal is to move quickly by using existing industrial sites rather than building from scratch.
She also indicated that BYD would prefer to own and operate a facility directly instead of entering a joint venture structure. That approach would give the company more control over production, staffing, and future model planning.
According to the report, BYD is discussing possible deals in Italy and other European markets. The company has not publicly named specific plants beyond broader references to discussions with automakers.
Overseas sales keep growing even as China remains tough
BYD’s push abroad comes at a time when its domestic market has become more competitive. The company posted its eighth straight month of year-over-year sales decline in April, even as its international business continued to expand at a record pace.
Last month BYD sold 135,000 vehicles outside China, a 70% increase from April 2025 and its highest overseas total on record. For the first four months of 2026, BYD’s overseas sales reached 456,253 vehicles, putting it close to the half-million mark.
Li said the company has seen stronger demand for electric vehicles as oil and gasoline prices have risen amid the US-Iran war. That environment may be helping push more buyers toward EVs in Europe and other markets.
Europe has become a major battleground
In markets such as the UK, BYD is now the best-selling EV brand through April, ahead of Tesla, Kia, and major European carmakers. That kind of performance helps explain why the company is looking for a bigger physical footprint in the region.
BYD already has trial production underway at its new Hungarian plant. It is also expected to launch a $1 billion EV factory in Turkey by the end of 2026.
Separately, BYD has introduced its Denza luxury sub-brand in Europe this year, along with its Blade Battery 2.0 and 5-minute flash charging technology. The Denza Z9 GT is already on sale in France, Germany, Italy, Spain, and the UK, with expansion to 30 countries targeted by the end of 2026.
Chinese brands are reshaping Europe’s auto industry
BYD’s interest in European plants reflects a broader trend: Chinese automakers are moving overseas to offset weaker conditions at home. A wave of low-cost domestic competitors has intensified pricing pressure in China, pushing firms like BYD to seek growth in Europe, Southeast Asia, and other markets.
Other legacy manufacturers are also reconsidering how they use their factories. Stellantis is discussing a deeper partnership with Leapmotor that could add a production line at its Figueruelas plant in Spain for a new Opel electric SUV and Leapmotor’s B10 SUV.
Ford, meanwhile, is reportedly in very advanced talks with Geely to sell part of its Valencia plant in Spain. The pattern suggests established automakers are increasingly open to Chinese partners as they try to keep idle capacity productive.
For European readers, the story matters because it shows how quickly the balance of power in the EV market is shifting. Chinese brands are no longer just exporting cars into Europe; they are increasingly positioning themselves to build them there.
Why This Matters
This matters because it shows a new stage in the EV transition: Chinese automakers are no longer just competing on price and technology, but also on industrial footprint. If BYD secures European factory capacity, it could lower logistics costs, reduce tariff exposure, and deepen its presence in a market that is becoming central to global EV growth.
It also puts pressure on legacy automakers with excess plant capacity. Deals like these may help keep factories running and workers employed, but they also signal that European and global carmakers are facing stronger competition from Chinese brands that can move faster and sell cheaper cars with advanced battery and charging technology.
Key Specs
- Company: BYD
- Executive: Stella Li, executive vice president and head of overseas expansion
- Discussion partners: Stellantis and other companies not named
- European strategy: Seeking underused plants in Europe, especially in Italy and other countries
- Overseas sales in April 2026: 135,000 vehicles
- YoY change in overseas sales: +70% versus April 2025
- Overseas sales January-April 2026: 456,253 vehicles
- April 2026 domestic trend: Eighth straight month of year-over-year sales decline
- Current European production: Trial production in Hungary
- Planned Turkey plant: $1 billion EV factory expected by end of 2026
- Europe brand launch: Denza luxury sub-brand introduced in 2026
- Denza markets: France, Germany, Italy, Spain, UK
- Expansion target: 30 countries by end of 2026
Source: Electrek
