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China's BYD studying plans for factory in France, executive tells BFM - Finance news and analysis from Global Banking & Finance Review
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China's BYD studying plans for factory in France, executive tells BFM

Published by Global Banking & Finance Review

Posted on October 12, 2026

2 min read

· Last updated: October 12, 2026

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BYD Mulls Building New Electric Vehicle Factory in France for European Growth

BYD's Expansion Plans in Europe

By Dominique Patton

BYD Considers French Factory Amid European Push

PARIS, Oct 12 (Reuters) - Chinese electric vehicle giant BYD  is closely studying the possibility of setting up a factory in France, its executive vice president Stella Li told local TV station BFM on Monday, as the group pushes for further expansion in Europe.

Current and Planned Production Sites

  • BYD has already announced it will produce cars in Hungary, with the launch expected in the fourth quarter
  • It is aiming to build two more plants in Europe, Li told BFM Business in an interview on the sidelines of the Paris auto show, adding that France could be a possible location
France as a Potential Location

"France is on the shortlist because your energy is very competitively priced," Li said, according to the report, adding that the group is "closely examining" options for a plant in the country.

Context: EU Local Content Rules

Chinese automakers are scouring Europe for production sites ahead of expected EU local content rules designed to protect the region's industry from a surge in exports from China

(Reporting by Dominique Patton; editing by Kirsten Donovan)

Key Takeaways

  • BYD’s Szeged, Hungary plant—their first European car factory—begins trial output and is slated for full production by late 2026 (iaa-mobility.com).
  • France is under active consideration for a second or third European plant, with competitive energy pricing a key draw, per BYD EVP Stella Li (euronews.com).
  • This expansion is driven by EU industrial policy, including local content and anti-subsidy rules, incentivizing local manufacturing to avoid tariffs on Chinese-made EVs (iea.org)

References

Frequently Asked Questions

Is BYD planning to build a factory in France?
BYD is closely examining the possibility of establishing a factory in France as part of its European expansion strategy.
Why is France considered a potential location for BYD's new factory?
France is on BYD's shortlist due to its competitively priced energy and strategic location in Europe.
What other European countries are involved in BYD's manufacturing plans?
BYD has already announced a factory in Hungary and is planning two additional plants elsewhere in Europe.
What is driving BYD's expansion in Europe?
BYD is expanding in Europe ahead of anticipated EU local content rules and growing demand for electric vehicles.

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