BYD announced that Spain is the leading candidate location for its third European production facility, citing lower operating costs, abundant clean energy and strong infrastructure. The move comes as the company seeks to localize production and circumvent growing export tariffs impacting Chinese automakers. 

The plant is expected to begin operations by 2027, with ramp-up plans over the following years. BYD’s strategy marks a significant step for China’s EV push into Europe, and could reshape the competitive landscape for EV exports from Asia into the continent.