BYD third European factory leaves Spain

BYD has moved Spain out of contention for its planned third European factory, El Mundo reported on May 16, citing company planning around its manufacturing footprint in the region. The report marked a reversal from October 2025, when Reuters reported that Spain was BYD’s leading candidate for a third European car plant, according to two people briefed on the matter. BYD has already committed to passenger-car production in Szeged, Hungary, and to a $1 billion plant in Manisa, Turkey. The shift leaves open where, or whether, the Chinese automaker will add a third site as it expands in Europe. ### When did Spain become a serious option for BYD? Reuters reported on October 13, 2025, that Spain was BYD’s top candidate for a third European factory, citing two sources familiar with the matter. One source said Spain was favored because of its relatively low manufacturing costs and clean-energy network, while another said other European locations were still under consideration. (elmundo.es) El Mundo had also linked Spain to BYD’s European manufacturing plans. A June 10, 2024, El Mundo report said BYD was studying a second factory in Europe with Spain as a candidate, reflecting Madrid’s early effort to attract Chinese vehicle investment. ### What has BYD already committed to in Europe? BYD announced on December 22, 2023, that it would build its first European passenger-car factory in Szeged, Hungary. (money.usnews.com) The company said the site would be built in phases and create thousands of local jobs, making Hungary the center of its European production operations. (elmundo.es) Turkey secured BYD’s second major regional manufacturing commitment on July 8, 2024. Turkey’s investment agency said BYD signed a $1 billion agreement for a plant in Manisa with annual capacity of 150,000 vehicles, plus an R&D center. Turkish state media said the project was expected to begin production by the end of 2026 and create 5,000 jobs. (byd.com) ### Why does the Spain decision matter now? May 16 reporting by Yahoo Finance, citing Euronews and Bloomberg, said BYD was in discussions with Stellantis and other automakers about acquiring or using underutilized factories in the European Union. Stella Li, who oversees BYD’s international operations, said the company was looking for “any available plant in Europe,” according to that report. (invest.gov.tr) The same report said Stellantis had announced a $25 billion write-down tied to its electric-vehicle operations and was weighing options for underused sites, including a little-used factory in Spain and plants in Italy operating below capacity. That reporting suggested BYD’s European expansion may now rely more on existing industrial assets than on a greenfield third site in Spain, though BYD had not publicly confirmed such a switch. That last point is an inference based on the timing of the two reports. (finance.yahoo.com) ### What do BYD’s Hungary and Turkey plans say about its priorities? Reuters reported on July 22, 2025, that BYD would delay mass production at its Hungary plant until 2026 and run the site below capacity for at least its first two years. The report said the company would start making cars earlier than expected in Turkey, where labor costs are lower, and that output there would exceed previously announced plans. (finance.yahoo.com) The Reuters report said BYD’s Szeged plant had an initial production capacity of 150,000 vehicles and eventual maximum capacity of 300,000 cars a year. It also said many cars made in Turkey would be destined for Europe without EU tariffs, unlike cars imported from China, which face BYD’s combined 27% tariff rate in the bloc. (money.usnews.com) ### Has BYD said publicly where the third factory will go instead? BYD has not publicly announced a replacement location for a third European factory in the material reviewed here. El Mundo reported on May 16 that Spain was no longer the chosen site, while the May 16 Yahoo Finance account pointed instead to talks over existing EU plants. (money.usnews.com) The clearest next markers are in Hungary and Turkey. Reuters said BYD had told the public it would launch operations at Szeged in October, while Turkey’s official investment announcement set the Manisa plant on a path toward production by the end of 2026. (money.usnews.com) (finance.yahoo.com)