According to information provided by BYD sources to the Reuters agency, the world’s largest manufacturer of electrified vehicles is expected to choose Spain to build its third factory in Europe, joining the existing ones in Turkey and Hungary – although another source, consulted by the same agency, has assured that the Chinese manufacturer is still considering options in other European countries and needs authorization from Chinese authorities to formalize any agreement. The future manufacturing unit, wherever it is located, is considered essential for its sales to continue growing in the Old Continent, with the choice of Spain based on factors such as its moderate labor costs, the energy network with many renewable sources, and Madrid’s unfavorable stance towards the European Commission’s increase in customs duties to be paid on electric vehicles manufactured in China (a position also taken by Germany, another country well-rated to host the new factory, but where labor and energy costs are much less favorable).
If this possibility is confirmed, Spain, which is already the second country that manufactures the most cars in Europe, after Germany, will strengthen its position in the production of electric vehicles, which is rapidly increasing in the country, due both to the transformation that the automotive sector is undergoing and to the resurgence of brands such as Ebro and Santana, driven by agreements they have signed with Chinese manufacturers eager to produce in their territory. According to data provided by ICEX, a public organization oriented towards companies and dependent on the Ministry of Economy, Trade, and Business, Spain currently has 18 factories belonging to nine multinational manufacturers, in which 2.38 million cars were produced in 2024 (out of a total of 44 models, 25 of which have electrified versions).
