This article first appeared on GuruFocus.
BYD (BYDDF)is leaning toward Spain for its 3rd European car plant, a move that would sit alongside planned sites in Hungary and Turkey, Reuters reported.
People briefed on the talks say Spain stands out for relatively low manufacturing costs and a clean energy network. The company has not made a final call and other countries are still in the mix. Any decision needs Chinese regulatory approval and is expected before year end. The expansion comes as BYD’s European momentum builds. The automaker sold 11,271 cars in the U.K. last month, up 880% year over year, making Britain its largest market outside China.
A Spanish assembly plant would bring production closer to customers, trim logistics friction, and sharpen competition with Tesla (NASDAQ:TSLA) and legacy OEMs as Europe ramps its EV supply chain.
Investors will watch for a formal site announcement before year end and signals from Chinese regulators on approvals and timing.