China’s largest automaker, BYD, is reportedly considering Spain as the leading candidate for its third European production facility. The move signals not only BYD’s growing confidence in the European electric vehicle market but also the shifting geography of industrial production in an era defined by clean energy transformation.
The proposed assembly plant in Spain, which would complement existing facilities in Hungary and Turkey, represents a strategic deepening of China’s engagement with Europe’s manufacturing ecosystem. For Spain, the project would mark a significant step toward its aspiration to become a continental hub for electric mobility — a goal aligned with Europe’s broader climate and industrial policies.
Sources indicate that Spain’s competitive manufacturing costs and its increasing reliance on renewable energy make it particularly attractive to BYD. This combination of economic and environmental advantages underscores how the global energy transition is reshaping investment patterns across regions.
Although BYD’s search for a third European site has been widely discussed, Spain’s emergence as the frontrunner had not been previously reported. Alberto De Aza, BYD’s country manager for Spain and Portugal, emphasised last month that Spain’s industrial infrastructure and low-cost electricity make it an “ideal location” for expanding the company’s European footprint.
Nonetheless, no final decision has been made. One source noted that other European countries remain under consideration, and the ultimate choice — expected before the end of the year — will require regulatory approval from Beijing.
Earlier reports suggested that Germany was also on BYD’s radar. Yet high labour and energy costs, coupled with internal strategic debates, have made that option less appealing.
If BYD ultimately selects Spain, it would represent more than a business expansion. It would signal the continuing reconfiguration of global industrial geography — one in which clean energy, cost efficiency, and geopolitical diversification are becoming the defining variables of economic strategy.
