BYD continues to develop its expansion plan in Europe and considers Germany and Italy as possible locations for a new European factory.
Stella Li, executive vice president, confirmed in statements to the Italian economic newspaper, “Sole 24 Ore“, during the Munich Motor Show, that BYD’s strategic goal is to become one of the three largest automotive manufacturers in Europe within five years.
After Hungary, BYD needs a new factory to increase production capacity and, in the future, plans a unit dedicated to battery production to meet the growing demand for electric vehicles in the European market.
However, the location of BYD’s new factory seems to be questioned internally, considering the high costs of labor and energy. “Energy costs remain the main obstacle, making a country like Italy less competitive than others,” explained Stella Li, emphasizing the importance of competitiveness for the Chinese group.
In a challenging European scenario, BYD’s expansion continues, despite the company recently revising its sales forecast for 2025 down from 5.5 to 4.6 million units (-16%). The decision, already communicated to suppliers and partners, reflects the slowdown in growth after years of record sales: in the second quarter of 2025, profits fell by 30% compared to the previous year, the first decline in over three years.
The main causes are the challenging market conditions and strong domestic competition in China (which accounts for 80% of sales), especially from Geely and Leapmotor. Despite the reduction, the target for 2025 remains a growth of 7% compared to the previous year, although at a more moderate pace than in previous years.
In this regard, Stella Li warns that the Chinese automotive industry will face a difficult period: of the 130 active manufacturers, at least 100 may exit the market due to price wars.
In Europe, BYD is evaluating strategic acquisitions and plans to expand its factory in Hungary, collaborating with local suppliers and international partners such as Nvidia, thus confirming its global approach as a technology company.
