BYD Plans to Take Over Idle European Plants to Boost Local EV Production

BYD is in talks with Stellantis Group and several other European automakers to take over idle car plants in Italy and elsewhere for localized electric vehicle (EV) production. Li Ke, Executive Vice President of BYD, stated that the company prioritizes utilizing existing manufacturing capacity through acquisitions or takeovers rather than building new factories from scratch, aiming to accelerate its ability to supply vehicles locally in Europe. BYD prefers to operate any acquired facilities independently and has ruled out joint ventures to maintain full control over production, management, and supply chains, ensuring consistent product quality and operational efficiency. Currently, some traditional internal combustion engine (ICE) vehicle production capacity in Europe remains idle, creating opportunities for Chinese automakers like BYD. Meanwhile, BYD is accelerating its global expansion as its sales in Europe continue to grow. Rising fuel prices driven by geopolitical tensions in the Middle East have revived demand for EVs in Europe, further incentivizing BYD to establish local production capacity. Additionally, BYD is actively recruiting industry talent to support the Denza brand’s expansion into the European market and plans to enter the UK later this year. By taking over idle plants, BYD can circumvent trade barriers, reduce logistics and tariff costs, and respond more swiftly to local market demands—making this move a pivotal step in its global strategy.