BYD adviser says Chinese automakers scouring Europe for factories ahead of EU local content rules

IndustryM&A · PartnershipRegulation
โดย Reuters·EUCN·Read original
Summary · why it matters

Chinese automakers are scouting existing European car assembly plants ahead of expected EU local content rules, according to BYD's European adviser Alfredo Altavilla, who said he keeps running into rival executives in airport lounges on the same quest. Altavilla told Reuters that Spain and France remain the "most actionable" options for BYD, China's biggest electric vehicle maker, because they offer "decidedly simpler situations," with refurbishment cost the top consideration. Chinese manufacturers have already struck several deals to share production lines at underutilised European plants owned by legacy automakers, including Leapmotor and Dongfeng with Stellantis in Spain and France respectively, Geely with Ford in Spain, and Chery teaming up with a local partner to take over an old Nissan plant in Spain. Unlike its Chinese rivals, BYD wants to buy, fully own and refurbish an existing factory, and is currently in the initial stage of production at its first European passenger car plant in Hungary, with a site for a second European facility expected to be selected by the end of the year. Altavilla said BYD would eventually need three assembly plants and one battery plant in Europe to support its growth ambitions and meet EU rules, adding that Italy has become a "plan B" because Stellantis, the country's sole major automaker, is unwilling to sell any plants.

Impact on stocks 9

Electrification & Mobility▲ · 6 stocks
Stellantis NV
STLA
± MixedCompetitionrelevance

Stellantis is sharing underutilised European plants with Leapmotor and Dongfeng, but is unwilling to sell plants to BYD, cutting both ways.

Geely Automobile Holdings Ltd
0175
▲ PositiveCompetitionrelevance

Geely struck a deal with Ford to share production at an underutilised Spanish plant, advancing its EU local-content positioning.

Zhejiang Leapmotor Tech Co
9863
▲ PositiveCompetitionrelevance

Leapmotor has a deal with Stellantis to share production lines in Spain, securing European assembly capacity.

Chery Automobile Co Ltd
9973
▲ PositiveCompetitionrelevance

Chery is teaming with a local partner to take over an old Nissan plant in Spain for European production.

Consumer Discretionary▲ · 1 stocks
Others▲ · 2 stocks
BYD Co Ltd Class A
002594
▲ PositiveRegulationrelevance

BYD is scouting/buying European plants to meet expected EU local content rules, with Spain/France most actionable and a second site due by year-end.

Theme Impact 3

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