BYD eyes Stellantis factories

BYD was reported on May 13 to be in talks with Stellantis and other European automakers about taking over underused factories in Europe, according to Bloomberg News, which cited comments from BYD Executive Vice President Stella Li. Reuters separately reported the talks, saying Li had described discussions over plants in countries including Italy. The report adds to a broader BYD push to localize production in Europe as the company expands beyond China. The company already has a passenger-car plant planned in Hungary and a second project in Turkey. ### What exactly was reported about Stellantis? Bloomberg reported on May 13 that BYD was negotiating with Stellantis and other European carmakers about taking over underused factories in the region, citing Li. Reuters said Li told Bloomberg the company was discussing potential deals to take on plants in countries such as Italy. Neither report said a transaction had been agreed, and the available reporting did not identify a specific Stellantis factory in Spain. (money.usnews.com) Spain has several Stellantis manufacturing sites, including Zaragoza, Vigo and Madrid, and Reuters reported on May 8 that Stellantis and Leapmotor planned to build two electric-vehicle models in Spain under an expanded partnership. That matters because it shows Stellantis is already using Spanish plants for Chinese-brand production, though the Reuters report on BYD did not tie the BYD talks to a named Spanish site. (bloomberg.com) ### Why is BYD looking for factories in Europe now? The European Commission said definitive countervailing duties on battery electric vehicles from China took effect on Oct. 30, 2024, after an anti-subsidy investigation. The Commission said those duties apply on top of the European Union's standard 10% car import duty. (msn.com) BYD has been building a European manufacturing base since December 2023, when it announced a passenger-car factory in Szeged, Hungary. Turkey announced in July 2024 that BYD would build a second European plant there with planned capacity of 150,000 vehicles a year and a target start at the end of 2026, according to industry reporting. (trade.ec.europa.eu) ### How far along are BYD's existing Europe plants? Szeged, Hungary, is BYD's first passenger-car factory in Europe, and BYD said in its 2023 announcement that the site would support localized production for the region. Industry publication Electrive reported in February 2026 that BYD had begun trial production there and that series production was expected in the first half of 2026, citing company statements and local officials. (byd.com) Turkey's Manisa project remains the second pillar of that strategy. Electrive reported the Turkish plant was designed to produce electric vehicles and plug-in hybrids and was due to start operating at the end of 2026, while later reporting from Turkish Minute said site work had become visible in January 2026. ### What does Brazil have to do with a Europe factory story? (byd.com) Brazil has become one of BYD's fastest-growing overseas markets. A Global China EV report published this month said BYD sold 14,911 vehicles in Brazil in April 2026, edging Volkswagen by about 80 units and becoming the first Chinese automaker to top the country's overall brand chart. Fenabrave, Brazil's vehicle dealers federation, said on May 5 that April registrations for autos and light commercial vehicles totaled 237,256 units, up 20.36% from a year earlier. (electrive.com) The Brazil figures are relevant because they show BYD's expansion is no longer confined to exports from China. Third-party market trackers differed on whether BYD led the overall market or the retail ranking in April, but multiple reports showed the brand gaining share rapidly in Brazil during 2026. (globalchinaev.com) ### Is Spain confirmed as the destination for a BYD-Stellantis deal? Spain is not confirmed in the reporting on the Stellantis talks now in circulation. Reuters reported in October 2025 that Spain was BYD's leading candidate for a third European factory, citing two people briefed on the matter, but that was a separate report from this week's account of talks over underused plants. (globalchinaev.com) May 2026 reporting instead points to a wider search across Europe. Reuters said Li described talks involving plants in countries such as Italy, and Bloomberg characterized the discussions as negotiations with Stellantis and other carmakers over underutilized factories in the region. Any Spain angle would depend on a later announcement by BYD, Stellantis or Spanish officials naming a plant, a product line or a production timetable. (uk.finance.yahoo.com) ### What should readers watch next? The next concrete BYD milestone in Europe is the ramp-up of the Szeged plant in Hungary, where series production was expected in the first half of 2026, according to Electrive. Turkey's planned plant remains targeted to start operating at the end of 2026, according to earlier industry reporting on the government agreement. (money.usnews.com) Any development in the Stellantis talks is most likely to surface through a company statement, a regulatory filing or a government announcement naming a factory, country and production schedule. For now, the verified public reporting supports talks with Stellantis and other automakers in Europe, but not a confirmed Spanish manufacturing agreement. (money.usnews.com) (electrive.com)