Chinese giant BYD ready to buy a car plant in Spain or France. Which big brands are in the sights?

FRANKFURT – The European car market is facing a turning point. In a strategic move to circumvent new European Union tariffs and stricter local content rules (“Made in Europe”), Chinese car giant BYD is set to sign a deal to acquire a brownfield car factory in Europe.

Recent statements by Alfredo Altavilla, BYD's special advisor for Europe, made at the Reuters Automotive Europe conference in Frankfurt, have set the industry on fire: two teams from the Chinese manufacturer are currently evaluating sites in Spain and France. A final decision is imminent.

The big enigma: What factory and what brand is this?

Although Altavilla has maintained official discretion over the exact name, the puzzle pieces behind the scenes of the industry and recent statements from BYD management point to a clear target: the Stellantis group.

BYD's global vice president, Stella Li, confirmed that the Chinese giant is in active discussions with Stellantis, as well as other European manufacturers, to take over unused production capacities. Here are the hottest hypotheses on the analysts' table:

• Stellantis plants in France and Spain: Stellantis (the group that owns Peugeot, Citroën, Fiat, Opel and Chrysler) is facing chronic overcapacity in Western Europe, where factories are operating at half capacity on average. Market sources mention the Stellantis plant in Rennes (France) or certain facilities in Spain (where Stellantis is already flirting with partnerships with other Chinese brands, such as Leapmotor).
• Luxury surprise – Maserati: In a statement that stunned analysts, Stella Li mentioned that BYD is also considering taking over "historic brands in difficulty", explicitly naming the luxury brand Maserati (also under the Stellantis umbrella) as "very interesting" for a possible transaction.
• The Spanish route: Spain remains a traditional favorite for BYD due to its excellent logistics ecosystem. However, the available space is quickly narrowing after other Chinese groups (Chery in Barcelona and SAIC/MG in Galicia) have already secured local facilities.

Why is BYD in such a hurry? Time is money (and taxes)

For the Chinese, building a factory from scratch (greenfield investment) takes too long. In the context where European customs duties on electric cars imported from China can reach up to 45% for some companies, BYD needs a "turnkey" solution.

“There is no time to start a factory from scratch today. All you can do is find an existing plant, take it over and retrofit it.” — Alfredo Altavilla, special advisor to BYD Europe

Moreover, the EU's upcoming Industrial Accelerator Act (IAA) will impose strict local production criteria for cars to qualify for government subsidies. By taking over a functioning plant, BYD can begin local assembly in record time.

A two-speed market: Chinese expansion vs. European restructuring

The figures clearly show why BYD can afford to play on the offensive while the Europeans retreat:

Indicator	Performanță BYD în Europa	Contextul Constructorilor Europeni
Vânzări (anul trecut)	+270% (~188.000 de unități)	Stagnare post-pandemică, fabrici la jumătate din capacitate
Vânzări (primele 5 luni)	Dublare (peste 100.000 de unități)	Scăderi ale cererii pe segmentul EV tradițional
Strategie de Producție	Fabrica din Ungaria (start în Q4) + A doua uzină vizată acum	Volkswagen analizează restructurări istorice (până la 100.000 de disponibilizări și închiderea a 4 fabrici în Germania)

While giants like Volkswagen are receiving what Altavilla called "a brutal first warning signal," BYD is strictly following its plan: transforming Europe into a market where 70% of cars sold locally are also produced locally.

Whether the final decision will target a regional Stellantis plant or a historic move on a brand like Maserati, one thing is certain: the Chinese electric "invasion" can no longer be stopped by simply raising tariff barriers, but is moving directly into the backyard of European manufacturers.