BYD is in discussions with Stellantis and several other European carmakers about taking on idle manufacturing capacity across the continent, as the Chinese electric vehicle (EV) company pushes further into the region.
According to Bloomberg’s report, the company’s executive vice president Stella Li, who is overseeing its international expansion, confirmed that BYD has visited “many plants” in Europe and indicated that “Italy is on the short list” of priority markets for such a deal.
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Discussions are understood to cover plant acquisitions in several European countries, with Italy among those under consideration.
The talks follow Stellantis’s announcement earlier this month that it would deepen its tie-up with Chinese carmaker Leapmotor, with two of its Spanish facilities designated to manufacture EVs for the brand.
Bloomberg separately reported last month that Stellantis is open to striking comparable arrangements with one or more Chinese manufacturers to address surplus capacity across its European operations.
BYD’s preferred model for any such acquisition would be outright ownership rather than shared arrangements, with Li describing sole control as “easier”.
France has also been cited as a longer-term target, with low electricity costs identified as a key consideration.
Beyond factory acquisitions, BYD is separately exploring the possibility of purchasing distressed legacy automotive brands in the region.
The broader context is one of mounting pressure on European manufacturers, which have been contending with high operating costs, a slowdown in EV uptake and growing competition from more affordably priced Chinese rivals.
These conditions have left several plants underutilised, making carmakers increasingly open to partnership or disposal options.
BYD’s overseas growth has been supported in part by a revival in consumer interest in EVs, driven by rising fuel prices connected to the conflict in the Middle East.
The company is also expanding its premium Denza sub-brand for European audiences, drawing staff from competitors including Porsche, and has a UK market launch for the marque scheduled for later this year.
