BYD Eyes Stellantis Factories to Accelerate Its 22% European EV Push

BYD Co. is negotiating with Stellantis NV and other European automakers to acquire underutilized factories, a strategic pivot that could fast-track its expansion in a market where Chinese EVs now command a 22% share.

"We are in discussions not only with Stellantis but also with other companies," Stella Li, Executive Vice President at BYD, said in an interview, confirming the company is exploring deals for plants in countries like Italy.

The talks come as Europe’s electric vehicle sales surged 27% year-over-year in April, with Chinese-built cars climbing to 22% of the market from 19% in 2025, according to Benchmark Mineral Intelligence. BYD is already ramping up its first European plant in Szeged, Hungary, but acquiring existing facilities would allow for much faster production scaling.

For BYD, buying a plant avoids the years-long process of greenfield construction and could mitigate potential European Union tariffs on imported Chinese EVs. For legacy automakers like Stellantis, selling idle capacity could generate cash and cut fixed costs as they navigate a costly EV transition.

Europe's Shifting Production Map

BYD's move is part of a broader trend of Chinese automakers establishing a manufacturing presence inside Europe to better compete with local incumbents like Volkswagen and Stellantis. This strategy shifts from a pure export model to local production, potentially softening trade frictions and improving logistics.

The strategy has precedent. In April, Stellantis announced it would build electric vans for its Chinese partner Leapmotor at its plant in Spain. Meanwhile, rival Chinese EV maker XPeng has already started production at Magna Steyr’s facility in Austria. The idea of sharing excess capacity is gaining traction among European executives, with Volkswagen CEO Oliver Blume recently calling it a "clever solution."

This manufacturing push comes as Europe stands out as the primary engine of growth in the global EV market. While sales have slowed in China and North America this year, European EV demand is accelerating, driven by high gasoline prices and government subsidies.

The move to acquire a plant signals BYD's aggressive growth ambitions beyond its existing Hungarian facility. A deal with a major player like Stellantis would provide immediate access to a skilled workforce and established infrastructure, posing a significant competitive threat to established European brands on their home turf. The outcome of these negotiations could reshape the continent's automotive production landscape and accelerate the market share gains of Chinese EV makers.

This article is for informational purposes only and does not constitute investment advice.