China’s top automaker plans third European manufacturing hub to boost local EV production and outpace rivals like Tesla
BYD Drives Forward with European Manufacturing Expansion
BYD (BYDDY), China’s leading electric vehicle manufacturer, is rapidly advancing its global manufacturing footprint, with Spain emerging as the front-runner for its third European plant, according to a recent Reuters report.
- The new facility would follow upcoming plants in Hungary (set to launch later this year) and Turkey (targeted for 2026).
- Spain’s low manufacturing costs, abundant solar power, and strong industrial base make it an ideal candidate, said Alberto De Aza, BYD’s country manager for Spain and Portugal.
“Spain ticks all the right boxes,” a source told Reuters, citing cost and clean energy advantages.
Why Spain? Clean Energy & Competitive Costs
BYD’s interest in Spain is driven by a strategic focus on clean energy access, a skilled workforce, and the country’s push to become an EV manufacturing hub.
- Spain has one of Europe’s most developed solar energy networks, offering BYD a sustainable power source for EV production.
- The country also provides cost-effective electricity and favorable logistics infrastructure, especially when compared to higher-cost nations like Germany, which BYD had previously considered.
BYD Sales Surge in Europe — Outpacing Tesla
BYD’s aggressive expansion is paying off in sales. In 2025 so far:
- European sales have surged 280% year-over-year in the first eight months.
- BYD outsold Tesla in Europe in both July and August, continuing its momentum with over 200% annual growth.
- The company has begun offering both plug-in hybrids and fully electric vehicles, diversifying its appeal across segments.
Local Production Strategy to Bypass Tariffs
BYD has set a clear goal: to produce all EVs sold in Europe locally by 2028.
- This strategy will allow it to avoid EU tariffs on Chinese imports and gain favor with regulators.
- Local manufacturing will also enhance supply chain resilience, reduce delivery times, and improve customer service.
In addition to Europe, BYD is expanding in Brazil and other global markets as part of a larger goal to sell 50% of its vehicles outside China by 2030.
Analyst Comparison: Where BYD Stands Among EV Peers
Here’s how BYD compares with other top EV stocks (data via TipRanks):
| EV Stock | Price | 1-Year Change | Analyst Price Target | Implied Upside | Consensus Rating |
|---|---|---|---|---|---|
| Tesla (TSLA) | $435.90 | +95% | $365.88 | -16.06% | Hold |
| Rivian (RIVN) | $13.06 | +29% | $13.83 | +5.9% | Hold |
| Li Auto (LI) | $23.13 | N/A | $25.92 | +12.06% | Hold |
| XPeng (XPEV) | $21.73 | N/A | $25.91 | +19.24% | Moderate Buy |
| Lucid (LCID) | $21.39 | N/A | $28.64 | +33.89% | Hold |
| General Motors (GM) | $55.62 | N/A | $65.89 | +18.46% | Moderate Buy |
| Ford (F) | $11.54 | N/A | $11.33 | -1.82% | Hold |
BYD is not currently listed on TipRanks with analyst coverage like its U.S.-listed peers, but investor interest is surging, especially as the company takes direct aim at Tesla’s dominance in Europe.
BYD is planning a third European factory in Spain, complementing upcoming sites in Hungary and Turkey, to boost EV production and strengthen its lead over rivals like Tesla. With soaring sales in Europe and a strategy to localize production, BYD is accelerating its global expansion with eyes on 2030.
