China's BYD expects to pick location for third European plant in 7-8 months

MILAN (Reuters) -Chinese electric vehicle giant BYD has started work on picking a location for its third plant in Europe, which it expects to complete in 7-8 months, its special adviser for Europe said on Tuesday.

"All options are on the table, all countries are in the process at the moment," Alfredo Altavilla said at a conference in Milan.

On Monday, Reuters reported that BYD was considering Germany for the plant, as the region's biggest economy and car market opposed EU tariffs on China-made EVs last year.

However, the German option is being questioned within BYD, because of the country's high labour and energy costs, low productivity and low flexibility, a source familiar with the matter told Reuters.

Altavilla denied Germany was BYD's top pick, saying it was an illogical option, but said no decision had been taken.

BYD will consider several criteria for its decision, including the competitiveness of conditions for manufacturing both cars and batteries, he said, but added it was "hard to imagine" a third plant in countries that are "not friendly with Chinese cars".

Asked whether Italy could be an option for BYD's third plant, Altavilla said Rome had supported the EU's tariffs against Chinese EVs.

(Reporting by Giulio Piovaccari.Editing by Keith Weir and Mark Potter)