BYD targets struggling EU car plants

BYD said on May 13 that it was in talks with Stellantis and other European automakers about taking over underused factories in Europe, opening a possible new route for the Chinese electric-vehicle maker’s expansion in the region. Stella Li, BYD’s executive vice president, said the company was looking for “any available plant in Europe” to use spare capacity, according to interviews reported by Bloomberg and Automotive News. The comments came as European carmakers face weak demand, high costs and pressure from Chinese rivals. They also came as BYD builds out its own manufacturing base in Hungary and Turkey. ### Which companies did BYD say it was talking to? Stella Li said on May 13 that BYD was speaking with “not only Stellantis” but “other companies too,” according to Reuters’ report on Bloomberg’s interview with her at the Financial Times Future of the Car conference in London. Bloomberg said the discussions covered possible deals for plants in countries including Italy. Automotive News Europe separately reported that Li described Maserati as “very interesting” when asked about brands, though the report on factory talks centered on underused plants rather than a named transaction. Stellantis did not immediately comment in the Reuters pickup of the Bloomberg report. (money.usnews.com) ### Why would BYD look for an existing European plant instead of exporting from China? BYD already has manufacturing projects in Europe, but local production can help reduce exposure to tariffs on China-made battery electric vehicles. The European Commission said definitive countervailing duties on Chinese-made battery EVs took effect on Oct. 30, 2024, after an anti-subsidy investigation. (autonews.com) Li said BYD would prefer to run any acquired plant on its own rather than through a joint venture, according to Bloomberg-based reports carried by Reuters and other outlets. Yahoo Finance, citing Euronews and Bloomberg, said the approach could let BYD localize more of its European production rather than rely entirely on exports from China. (trade.ec.europa.eu) ### What does BYD already have under construction in Europe? BYD’s Hungary project in Szeged carries a planned investment of about 4 billion euros and an initial annual capacity of 150,000 vehicles, with scope to expand to 300,000, according to Reuters-based reports from July 2025. Those reports said mass production was delayed to 2026 and would run below capacity in the first years. (money.usnews.com) Turkey’s government and company statements from July 2024 put BYD’s Manisa investment at $1 billion, with planned annual capacity of 150,000 vehicles and production targeted by the end of 2026. The project also includes an R&D center, according to Turkish investment authorities and subsequent reporting. (money.usnews.com) ### Why are European plants available at all? Stellantis’ vehicle production in Italy fell 20% in 2025 to 379,706 units, the lowest level since 1954, the FIM-Cisl union said in January 2026, according to Reuters-reported coverage. Passenger-car output fell 24.5% to 213,706 units. The union cited weak European demand, especially for EVs, delays to new model launches and competition from Chinese rivals. (invest.gov.tr) The European Parliament’s research service said in a 2024 briefing that the EU auto sector was being weighed down by weak economic growth, high energy costs, supply-chain disruption and geopolitical risks. Reuters also reported in December 2024 that European automakers were announcing plant closures and layoffs amid weak demand, high production costs, competition from Chinese rivals and a slower-than-expected EV transition. (auto.economictimes.indiatimes.com) ### Does this mean a deal is close? Reuters’ May 13 report said only that BYD was negotiating and discussing potential deals; it did not identify a signed agreement, a target plant or financial terms. Bloomberg-based reports said the company was exploring options across more than one automaker. (europarl.europa.eu) BYD’s next concrete manufacturing milestones remain the plants it has already announced. The Szeged plant in Hungary is expected to start mass production in 2026, while the Manisa plant in Turkey is scheduled to begin production by the end of 2026, according to Reuters-based reporting and Turkish government statements. (money.usnews.com 1) (money.usnews.com 2)