MILAN (Reuters) – China’s BYD aims to complete works to picking a location for a third plant in Europe in 7-8 months as it prepares to launch operations at its first facility in the region, in Hungary, the EV giant’s special adviser for Europe said on Tuesday.
“All options are on the table, all countries are in the process at the moment,” Alfredo Altavilla said at a conference in Milan.
BYD will start operations at its assembly plant in Hungary in October, while a second site in Turkey is expected to come on line in March 2026. When fully operational, they will have a total production capacity of 500,000 cars per year.
On Monday, Reuters reported that BYD was considering Germany for a third facility, as the region’s biggest economy and car market opposed EU tariffs on China-made EVs last year.
However, the German option is being questioned within BYD, because of the country’s high labour and energy costs, low productivity and low flexibility, a source familiar with the matter told Reuters.
Altavilla denied Germany was BYD’s top pick, saying it was an illogical option, but said no decision had been taken.
BYD will consider several criteria for its decision, including the competitiveness of conditions for manufacturing both cars and batteries, he said, but added it was “hard to imagine” a third plant in countries that are “not friendly with Chinese cars”.
Asked whether Italy could be an option for BYD’s third plant, Altavilla said Rome had supported the EU’s tariffs against Chinese EVs.
However, to prepare for an imminent manufacturing launch in Europe, BYD last month met Italian auto parts makers to discuss potential supplies for its two upcoming plants.
On Tuesday Altavilla said BYD had already signed contracts, for its plant in Hungary, with several Italian suppliers including premium brake maker Brembo, tyremaker Pirelli and laser systems producer Prima Industrie.
The Chinese group also plans to meet suppliers from other European countries for its European plants.
(Reporting by Giulio Piovaccari; Editing by Keith Weir, Mark Potter and Nick Zieminski)
