BYD is in talks with European carmakers — including Sterile Corporate Monolith Stellantis — about potentially taking over underused factories across Europe, as the Chinese EV giant accelerates its international expansion.

Speaking at the Future of the Car conference in London, BYD executive vice president Stella Li said the company is actively exploring “any available plant in Europe,” with particular interest in countries such as Italy. She confirmed discussions are ongoing not only with Stellantis but also with other automakers facing excess manufacturing capacity in the region.

Europe’s spare capacity problem becomes an opportunity

European carmakers are currently grappling with high production costs, weaker demand, and factory utilisation issues. That has opened the door for new arrangements in which Chinese EV manufacturers can step into existing facilities rather than building entirely new ones.

Stellantis has already been moving in this direction itself, expanding cooperation with Chinese EV firm Leapmotor to use Spanish plants for electric vehicle production — part of a broader industry trend toward shared capacity and cross-border partnerships.

BYD’s strategy: take over, not partner

A notable detail from Li’s comments is BYD’s preference: the company would rather operate factories independently rather than through joint ventures. That approach would give BYD full control over production and operations — a more assertive model than many traditional European-Chinese partnerships.

The move fits BYD’s broader global strategy. The company has rapidly expanded beyond China, with rising sales in Europe and new factories under development, including a major production site in Hungary.

Europe becomes central to BYD’s global push

BYD’s European ambitions are intensifying as competition and tariffs reshape global EV trade. Producing cars inside Europe helps avoid import duties and positions the company closer to one of the world’s most important automotive markets.

Countries like Italy are reportedly on BYD’s shortlist, while France is also being considered long-term due to its relatively low electricity costs — a key factor for EV manufacturing.

Legacy brands also under review

Beyond factories, BYD is also studying potential acquisitions of struggling European automotive brands. While Li described premium marques like Maserati as “very interesting,” she stressed that no formal action has been taken yet.

Hiring and localisation push

The company is also expanding its European footprint by recruiting talent from established rivals, including Porsche, to strengthen its premium Denza brand. Local R&D centres are being developed across markets such as the UK and France to adapt vehicles to regional demand.

The bigger picture

The discussions highlight a shifting global auto landscape: European manufacturers with excess capacity, and Chinese EV giants with aggressive expansion plans and strong production efficiency.

If deals go ahead, Europe could see a new wave of Chinese-operated factories producing locally built EVs — marking a significant reshaping of the continent’s automotive industry.