Chinese electric vehicle manufacturer BYD is in discussions with several European carmakers, including Stellantis, about acquiring underused production plants as it seeks to expand its manufacturing footprint across Europe.
The talks come at a difficult time for Europe’s automotive sector, where many factories are operating below capacity following weaker-than-expected demand for electric vehicles and continued pressure from lower-cost Chinese competitors.
Speaking on the sidelines of an automotive conference in London, BYD Vice President Stella Li said the company was exploring opportunities to make use of excess manufacturing capacity across the continent.
“We are talking to not only Stellantis, we’re talking to other companies too,” Li said. “We are looking for any available plant in Europe because we do want to utilise this kind of spare capacity.”
BYD overtook several established rivals last year to become the world’s largest seller of electric vehicles. However, slowing growth in China’s domestic market and intensifying competition have weighed on earnings, prompting the company to accelerate its international expansion plans.
The automaker is already constructing a major production facility in Szeged, Hungary, which is expected to begin operations in 2027. Analysts say additional factory acquisitions in Europe could help BYD avoid import costs, strengthen supply chains and expand market access across the European Union.
Li also indicated that BYD may be interested in purchasing established European automotive brands. She described Maserati, which belongs to Stellantis, as “very interesting.”
Stellantis, whose portfolio also includes Jeep, Peugeot and Fiat, has faced mounting pressure in its electric vehicle business. The company recently announced a €22 billion write-down tied to its EV operations after acknowledging it had overestimated consumer demand for clean-energy vehicles.
Last week, Stellantis also confirmed it was considering selling an underused Spanish factory to its Chinese joint venture partner Leapmotor.
Several of the group’s European plants are operating significantly below normal levels. According to Italian labour union reports, the Cassino plant in Italy produced fewer than 3,000 vehicles during the first quarter of 2026, marking a steep decline from the previous year. Production at the historic Mirafiori factory in Turin has also been sharply reduced and is now largely focused on Fiat 500 hybrid and electric models.
Industry analysts say Europe’s automotive market has yet to fully recover from the disruption caused by the COVID-19 pandemic. Many factories across the region are currently operating at roughly half their intended capacity.
At the same time, Chinese manufacturers have rapidly expanded their presence in Europe, benefiting from lower production costs and advances in battery and vehicle technology that have increased pressure on established Western automakers.
Stellantis has not publicly commented on the reported discussions with BYD.
