China’s BYD wants Europe’s empty car factories

Chinese electric-vehicle giant BYD stock (002594.SZ) is in talks with Stellantis (STLAM.MI) and other European automakers about taking over underused factories across Europe, according to a Bloomberg News report published Wednesday.

The move shows how fast the balance of power in the global car industry is changing.

BYD, now the world’s largest electric-vehicle seller, is looking at plants in countries including Italy as it pushes deeper into Europe’s growing EV market. The discussions were confirmed by BYD Executive Vice President Stella Li during an interview reported by Bloomberg.

The company wants control of its own factories instead of running joint manufacturing ventures.

“It’s very hard to partner and ask permission from another person,” Li said at the Financial Times Future of the Car conference in London. “We prefer to run everything on our own.”

Electric Vehicle Manufacturing Moves Into Europe

The talks come at a difficult time for many European car factories. Several plants across the region are operating below capacity as legacy automakers face slower demand growth, rising costs, and pressure from cheaper Chinese EV brands.

For BYD, the opportunity is clear. Using existing European factories could help the company expand faster while reducing costs tied to tariffs, shipping, and supply chain delays.

The strategy also places BYD closer to European buyers as demand for electric vehicles rises again following higher fuel prices linked to tensions in the Middle East.

The Chinese automaker has expanded aggressively outside China after intense domestic price wars squeezed profit margins at home. Its sales in Europe have grown rapidly in recent months.

EV Supply Chain Pressure Builds For European Brands

The report also comes just days after Stellantis and Chinese EV maker Leapmotor announced plans to begin joint car production in Europe.

That deal signalled a growing shift in the industry: European manufacturers are becoming more open to partnerships with Chinese EV companies as competition increases.

But BYD appears to want a different path.

Instead of sharing operations, the company prefers direct control over production while still working with other automakers in areas such as battery supply and technology partnerships.

That approach could reshape Europe’s EV Supply Chain landscape. Industry analysts say factory control gives companies more flexibility over pricing, production speed, and technology protection.

For European manufacturers already struggling with high costs and slower EV adoption, Chinese investment could bring fresh production activity to idle factories.

European Auto Plants Become Strategic Assets

The discussions also highlight the growing importance of factory infrastructure in the global EV race.

Building new plants from scratch takes years and costs billions of dollars. Taking over existing facilities could help BYD scale faster across Europe.

Italy has become one of the possible targets because of its large automotive manufacturing base and available industrial capacity.

Neither company confirmed the talks directly.

Stellantis declined to comment on Reuters’ request, saying it regularly speaks with different industry players as part of normal business activity.

BYD did not immediately respond to Reuters’ request for comment. Still, the report signals that Europe’s aging auto plants may become some of the most valuable assets in the next stage of the global electric-vehicle battle.

Read also: Why BYD is selling a $40,000 EV for $134,000 in Europe