Chinese electric-vehicle manufacturer BYD is actively pursuing the acquisition of underutilised automotive plants across Europe, according to Stella Li, the company’s vice-president for international operations. Speaking on the sidelines of an auto conference in London, Li confirmed that BYD is in discussions with Stellantis and other carmakers about taking over their European production facilities.
“We are talking to not only Stellantis, we’re talking to other companies too,” Li said. “We are looking for any available plant in Europe because we do want to utilise this kind of spare capacity.”
The talks come at a moment of strain for Europe’s automotive sector. Stellantis, the Franco-Italian group behind Peugeot, Fiat, Jeep, and Maserati, recently shocked investors with a €22-billion write-down on its electric-vehicle operations, acknowledging it had overestimated demand for clean-energy cars. The group is already considering selling an underused factory in Spain to its Chinese joint venture partner Leapmotor.
European factories running at half capacity
The broader European car market has not yet recovered from the COVID-19 pandemic downturn. Factories across the continent are operating at an average of only 50 percent capacity, according to industry data. Two Stellantis facilities in Italy are emblematic of the problem. The Cassino plant in the province of Frosinone produced just 2,916 cars in the first quarter of 2026 — a drop of 37.4 percent — and is running only five to six days per month, according to a Fim-Cisl union report cited by Italian media. The historic Mirafiori plant in Turin has been reduced to manufacturing only the Fiat 500 hybrid and electric models.
BYD, which became the world’s largest EV seller last year, is already building its own factory in Szeged, Hungary, scheduled to open in 2027. But the company is also looking to snap up existing capacity more quickly. Li described Stellantis’ Maserati luxury brand as “very interesting,” signalling that BYD may be interested in acquiring not just factories but also legacy European brands.
The Chinese carmaker’s push into Europe comes as its domestic sales have slumped, prompting a search for larger markets overseas. European manufacturers, meanwhile, face an onslaught from Chinese competitors whose rapidly advancing technical prowess and low production costs pose significant risks. The situation is further complicated by ongoing geopolitical tensions, as seen in EU unity concerns following Trump-Xi talks and the broader trade war fallout that Europe is watching closely.
For European policymakers, BYD’s interest in idle plants presents both an opportunity and a dilemma. Acquiring underused facilities could preserve jobs and industrial capacity, but it also deepens the continent’s dependence on Chinese investment in a strategic sector. The European Union is currently debating a €2 trillion budget that includes a surge in defence spending, while farmers and regions face cuts — a reflection of the competing priorities that will shape the bloc’s industrial policy.
As BYD’s talks with Stellantis and others continue, the outcome will be closely watched in Turin, Cassino, and across Europe’s automotive heartlands. The question is whether Chinese capital can revive Europe’s idle assembly lines — or whether it will accelerate the decline of its own brands.
