BYD in Talks to Buy European Plants from Stellantis and Other Carmakers
· automotive
BYD is in early talks with Stellantis and several other European automakers about buying shuttered European assembly plants, according to a Reuters report published in late May 2026. The talks, which are described as preliminary, are focused on plants that have been idled or are at risk of closure as European brands adjust their EV production footprints.
Why BYD wants more European capacity
The EU’s anti-subsidy tariffs on Chinese-made EVs, in force since late 2024, have effectively added 17% to 38% to the import price of BYD vehicles sold in Europe, depending on the model. The company has responded by ramping up its plant in Szeged, Hungary, which began production in 2025 and is on track to reach 300,000 units per year at full capacity. The Stellantis talks would add a second European production base, most likely in France or Italy where Stellantis has plants that are not running at full utilization.
The wider M&A and partnership picture
BYD is not the only Chinese EV maker pursuing European production. SAIC (MG) is in discussions with European suppliers and dealers about local assembly, Geely has committed to a new plant in Spain, and Chery opened its Barcelona plant in 2025. The shift is a direct response to the EU’s anti-subsidy tariffs, which have compressed margins for the Chinese brands and made local production commercially necessary for further share gain in Europe.
What Stellantis gets from a deal
For Stellantis, the talks would convert underused European plants into a new revenue stream at a time when the group is rationalizing its European production footprint. Stellantis has been cutting European output in response to weaker European EV demand and increased Chinese competition. A sale or long-term lease to BYD would also preserve jobs at plants that would otherwise be at risk of closure.
Why it matters
For an international reader, the talks are the clearest sign yet that the European and Chinese auto industries are moving toward genuine industrial integration rather than just cross-border sales. The pattern is similar to what happened with Japanese automakers in the United States in the 1980s, when the threat of import restrictions pushed them to build local plants. The next milestone on the BYD-Stellantis talks is expected before the end of 2026.