BYD (BYDDY) stock motored higher today as it got closer to building a third manufacturing site in Europe to keep the pressure on rivals such as Tesla (TSLA).
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China’s number one carmaker is, according to a Reuters report, considering Spain as the best country in which to build the new site to serve European drivers.
Sunny Spain
The plant would join two other planned factories in Hungary and Turkey, boosting both BYD’s sales and Spain’s ambition to become a major hub for electric vehicle production.
The Hungarian plant could be online later this year with the Turkish plant set to open in 2026.
A source in the Reuters article said that Spain ticked all the right boxes for BYD because of its relatively low manufacturing costs and clean energy network given its huge solar industry.
Nothing do with sangrias and siestas, however.
Indeed, BYD country manager for Spain and Portugal Alberto De Aza told Reuters last month that Spain would be an ideal location for further expansion of BYD’s European manufacturing footprint because of its industrial infrastructure and cheap electricity.
Reuters reported in March that BYD has looked at other countries including Germany, though there were concerns over high labor and energy costs.
European Pedigree
BYD’s sales in Europe jumped 280% in the first eight months of the year from the same period in 2024 after the automaker began selling plug-in hybrids as well as fully electric cars.
In August BYD surpassed Tesla in new car sales in Europe for the second consecutive month, with sales up over 200% year-on-year.
It aims to produce all EVs for sale in Europe locally within three years, which would help it avoid EU tariffs on China.
In a similar move, the company is opening manufacturing sites in other countries outside of China such as Brazil.
It has a target to sell half of its vehicles outside the Chinese market by 2030 in response to an increasingly competitive EV market both at home and abroad. As can be seen it is already performing well in overseas sales – see above – but expect more acceleration to come.
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