Chinese electric vehicle giant Byd Company Limited is advancing its European manufacturing footprint, with the location for its second vehicle assembly plant expected to be finalized by the end of this year, prioritizing the acquisition and renovation of existing automotive production lines in Spain and France.
Following the upcoming launch of its Hungary factory, Byd Company Limited is intensifying its local production capacity across Europe. According to multiple media reports, the company's special advisor for the European market, Alfredo Altavilla, stated on September 16 at a Denza brand event in Turin, Italy, that in the long term, Byd Company Limited needs to establish three vehicle assembly plants and one battery plant in Europe to support business growth and comply with regional regulations. This includes the company's first European vehicle factory announced in December 2023 in Szeged, Hungary, which has now entered the production startup phase.
Altavilla revealed that the location for the second vehicle assembly plant is expected to be determined before the end of 2026. Unlike the self-built facility in Hungary, Byd Company Limited prefers to acquire and retrofit an existing plant, with France and Spain being the most viable options at present, while Italy serves as a backup plan. He did not disclose details on the location or planning progress for the third assembly plant and battery facility.
Explaining the shift towards existing factories, Altavilla noted that the company needs to find facilities that can be purchased quickly and renovated with relatively modest investment to accelerate local mass production timelines. He mentioned that Byd Company Limited has a dedicated team continuously evaluating various plants, and he frequently travels across Europe for site inspections. When contacted by media about the European construction progress, Byd Company Limited responded that official announcements would be the authoritative source of information.
In June 2026, Stella Li, Executive Vice President and head of overseas business at Byd Company Limited, stated in an interview that the Szeged plant in Hungary would begin vehicle assembly in the fourth quarter, emphasizing that Hungary is the company's current top priority and that work on a Turkey facility had been paused to focus on European production. In a 2025 interview, she had referred to Turkey as the second European plant following Hungary and mentioned consideration of a third facility.
This year, Byd Company Limited has pivoted its second European plant strategy towards acquiring and revamping existing capacity, with a search for sellers having been underway for several months. In May, Li told media in London that Byd Company Limited was in discussions with Stellantis and other European automakers regarding taking over underutilized factories.
According to public information compiled from various sources, several Spanish vehicle plants with significant spare capacity already have plans for new partners or vehicle models. Ford's Almussafes plant in Valencia, with a designed annual capacity of approximately 500,000 vehicles, produced only 48,400 units in the first half of 2026. Ford announced in July the formation of a joint venture with Geely, with shareholdings of 66% and 34% respectively, and plans to introduce new models by 2028. Stellantis' Villaverde plant in Madrid has also seen a marked decline in utilization, having shifted to single-shift production earlier this year and producing around 30,800 vehicles in the first half, down 42% year-on-year. This facility has a clear ownership transfer plan, with Stellantis announcing in May its intention to transfer it to Leapmotor International's Spanish subsidiary to produce Leapmotor models.
Stellantis' Figueruelas plant in Zaragoza, with an annual capacity of around 500,000 vehicles, saw output drop to 142,500 units in the first half due to production line upgrades. The plant is set to produce Leapmotor's pure-electric SUV B10 and Opel's electric SUV, with a battery factory jointly built by Stellantis and CATL under construction nearby.
Renault's Palencia plant also has substantial spare capacity, with a maximum annual output exceeding 300,000 vehicles but producing roughly 60,000 units in the first half. Renault had announced a shift to single-shift production from July, but under a new labor agreement signed in June, the company has committed to allocating three new models to the plant, including two on multi-energy platforms and one hybrid.
Other major Spanish vehicle plants also have new production arrangements in place. Stellantis' Vigo plant produced around 560,000 vehicles in 2025 and has plans to introduce a new small EV platform, while Renault's Valladolid plant has secured commitments for two new hybrid models. Volkswagen's Navarra plant and the Martorell facility of its Spanish brand SEAT are advancing electrification transitions. The Barcelona plant, formerly operated by Nissan, has been restarted by Spanish automaker Ebro in partnership with Chery and is currently ramping up production.
As of now, no public information indicates that Byd Company Limited has advanced cooperation with any specific plant in Spain or France. Earlier automotive media analysis suggested that the former Smart factory in Hambach, Moselle department in northeastern France, could be a candidate. At the Turin event, Altavilla also specifically addressed the question of establishing a plant in Italy.
The Italian government had previously courted Byd Company Limited to set up a facility there, aiming to attract a major automaker beyond Stellantis to expand domestic vehicle production. In February 2024, Byd Company Limited's Europe head confirmed that contact had been made. However, Altavilla stated at the Turin event that Italy is currently a "backup option" behind France and Spain. He explained that the company needs to acquire existing plants capable of resuming production quickly, yet suitable factories in Italy are not on the market.
Byd Company Limited had approached Stellantis' former Maserati plant in Grugliasco near Turin, but found during inspection that production equipment had already been relocated to other bases. "I cannot buy something that is not for sale," Altavilla said, noting that the final site selection depends on local competitive conditions and the investment required for plant renovation. He also stated that other countries have not been ruled out, adding that he would visit the UK to inspect factories after the Turin event.
Altavilla assumed the role of special advisor for the European market at Byd Company Limited in September 2024, bringing decades of automotive industry experience. He currently also serves as a senior advisor to a European private equity firm and holds directorships at companies in industrial equipment, automotive services, asset management, and auto parts sectors.
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