BUSINESS

BYD in Talks With Stellantis, Others to Take Over Underutilized European Factories

Published: May. 18, 2026 7:42 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

A BYD logo in Brazil. Photo: VCG

BYD Co. Ltd. is negotiating with European automakers, including Stellantis NV, to take over their underutilized factories as the Chinese electric vehicle (EV) giant tries to expand its overseas manufacturing footprint.

During a recent interview with Bloomberg, BYD Executive Vice President Li Ke said that the carmaker is seeking to use idle capacity at existing European plants. Sources close to the company confirmed the information with Caixin. Li oversees the automaker’s international business.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Save an extra $50. Introductory offer for new readers. Subscribe now.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

BYD is negotiating with European automakers like Stellantis to take over underutilized factories to expand overseas manufacturing amid rising EU protectionist barriers.
The EU's Industrial Accelerator Act (March 2026) requires EVs to be locally assembled with 70% local components, capping foreign ownership at 49% for subsidies.
BYD's 2025 overseas sales hit 1.1 million vehicles (+145% YoY); in early 2026, over 454,000 sold, prompting a target raise to 1.5 million vehicles.

AI generated, for reference only

Who’s Who

...: BYD is negotiating to acquire underutilized European factories from automakers like Stellantis to expand overseas production. The EU's upcoming Industrial Accelerator Act imposes restrictions, making factory acquisitions timely. BYD's overseas sales surged 145% in 2025 to 1.1 million vehicles, with a target of 1.5 million in 2026.

AI generated, for reference only

What Happened When

2000 to 2019：: Major Western automakers in Europe had a capacity utilization rate of 79%.

2020 to 2025：: The capacity utilization rate of major Western automakers in Europe fell to 68%.

2024：: BYD's overseas revenue accounted for 28.6% of total revenue.

2025：: BYD's overseas passenger car and pickup sales surged 145% year-on-year to about 1.1 million; overseas revenue jumped 40.1% to 310.7 billion yuan, accounting for 38.7% of total revenue.

March 2026：: The European Commission introduced the Industrial Accelerator Act with multiple restrictive measures; BYD raised its 2026 overseas sales target from 1.3 million to 1.5 million vehicles.

First four months of 2026：: BYD sold more than 454,000 vehicles overseas, a year-on-year increase of more than 50%.

2027 at the earliest (estimated)：: The Industrial Accelerator Act is expected to take effect, creating a window of opportunity for investment in the EU.

AI generated, for reference only