Chinese electric vehicle manufacturers are looking for ways to build more cars in Europe without spending years constructing new factories.

Buying or renovating existing assembly plants could help them expand production faster, establish closer ties with European customers, and prepare for potential requirements that encourage vehicles to contain more locally produced components.

Why Existing Factories Are Attractive

Building a new vehicle factory requires substantial investment, careful planning, and time. A company must secure a suitable site, install production equipment, recruit workers, and establish the systems needed to manufacture vehicles consistently. Using an existing plant could shorten that process, particularly when the building already has suitable facilities and access to an automotive supply network.

Alfredo Altavilla, BYD's European adviser, told Reuters in September 2026 that Chinese manufacturers were actively examining production sites across Europe. The key consideration is not simply whether a factory is available, but how much it would cost to restore and adapt it for a new manufacturer.

A former or underused assembly plant may offer an attractive starting point, but it is not automatically ready for immediate production. Equipment may need replacing, production lines may require redesigning, and the facility must be able to meet the new owner's manufacturing standards.

Spain and France Stand Out for BYD

Spain and France were identified by Altavilla as particularly practical options for BYD's search. The company was assessing the cost and feasibility of potential sites while considering how quickly a refurbished plant could begin operating.

BYD was already developing its first European passenger-car factory in Hungary at the time of the report. Altavilla said the company expected to choose a location for a second European facility by the end of 2026. Looking further ahead, he described a potential European manufacturing network involving three vehicle assembly plants and one battery factory.

The proposed network reflects the scale of investment required to serve a large market locally. Producing vehicles closer to customers could reduce reliance on finished-car imports and give the company greater control over production schedules and distribution. Spain and France are not the only possibilities under consideration. Other locations remain relevant, depending on available facilities, renovation costs, supply-chain access, and the terms offered by potential sellers.

Other Manufacturers Are Exploring Similar Routes

BYD is not the only company looking at established production facilities. Several Chinese automakers have already pursued arrangements that allow them to use existing European manufacturing capacity, either through partnerships or by taking over sites that are no longer being fully used.

Examples reported in September 2026 included Leapmotor working with Stellantis in Spain, Dongfeng collaborating with Stellantis in France, and Geely partnering with Ford in Spain. Chery also joined a local partner to take over a former Nissan factory in Spain. These arrangements illustrate different ways manufacturers can establish a European production presence without building every facility themselves.

Preparing for Local Production Requirements

The search for factories is also connected to proposed European rules that would encourage more local manufacturing and sourcing. The planned requirements, commonly described as “Made in Europe,” are intended to increase the amount of production and component sourcing carried out within the region.

The precise requirements were still being developed when the September report was published. Manufacturers therefore face a planning challenge: they need to consider possible future conditions before the final details are known.

Why Factory Costs Matter

For companies weighing potential sites, renovation expenses can be as important as the purchase price. An inexpensive facility may require extensive work before it can produce modern electric vehicles, while a more costly site could offer better equipment, logistics, or access to suppliers.

Manufacturers must also consider the costs that continue after a factory opens. These include hiring and training workers, maintaining production equipment, arranging parts deliveries, and ensuring consistent quality. The business case depends on whether the plant can operate efficiently enough to justify the investment.

What Local Manufacturing Could Mean for Buyers

Producing cars in Europe could help automakers respond more directly to local demand. Shorter supply routes and closer coordination between factories, suppliers, and dealers may make production planning more flexible. Local manufacturing could also support jobs and create additional business for component suppliers.

The growing search for existing European factories shows how automakers are adapting their manufacturing plans to meet future market conditions. For BYD and its competitors, taking over or sharing established plants may provide a faster route to local production than building entirely new facilities.

Success will depend on more than securing a building. As the details of local production requirements become clearer, the ability to combine speed with efficient manufacturing could become an important advantage in Europe's electric vehicle market.