Chinese conglomerate BYD (Build Your Dreams), one of the globe’s leading electric vehicle manufacturers, is exploring Europe as a new manufacturing base with plans to establish its first car factory on the continent in Hungary. Spain also emerged as a potential destination, and Asturias was among the regions considered as candidates.
Reports from the German daily Frankfurter Allgemeine Zeitung indicate that BYD reached this decision following a meeting between BYD chairman Wang Chuanfu and Hungary’s Prime Minister Viktor Orbán last month, according to sources familiar with the negotiations.
Asturias positioned itself prominently in BYD’s candidacy, with a BYD delegation visiting the Principality before the summer to assess possible sites. The party toured Asturias’ Logistics and Industrial Activities Zone (Zalia) in Gijón, a location confirmed by regional government sources. These lands met several of BYD’s initial criteria, including the availability of more than one million square meters of industrial space with direct seaport access to facilitate European vehicle exports. The visit was coordinated by Invest in Spain, a public entity connected to the Institute of Foreign Trade (ICEX), which aims to attract foreign investment.
BYD remains open to Hungary, though a formal decision is not expected until year-end. Nevertheless, Asturias retains potential. People close to BYD and the Spanish government say the Chinese group could revise its factory strategy. Initially, BYD planned a single facility occupying about one million square meters, but the plan evolved to a two-plant concept. The Hungarian site would host the first facility, roughly 500,000 square meters, while the fate of the second plant remains undecided. While other regions in Spain could attract BYD, the Principality of Asturias continues to be a viable contender. The BYD delegation also visited land within the Plisan logistic zone, linked to the Vigo port. The Spanish government’s strongest incentive to attract this and other investments has been the PERTE program, specifically the Electric and Connected Vehicle (VEC II) initiative, which includes a second call for funding. Public resources of 559 million euros were allocated to this effort, and the deadline for applications closed on September 15.
Hungary appears to be BYD’s favored European expansion route. In July, the company announced a plan to assemble vehicles in the Hungarian town of Fót, just 17 kilometers from Budapest, with an initial investment of 27 million euros and a projected start of 100 jobs. BYD has operated an electric bus assembly facility in Hungary since 2017, underscoring ongoing regional commitments and expertise.
Should the Hungarian car factory gain approval, Spain’s ambition to become a hub for electric mobility in Europe could be challenged. In addition to BYD, Spain is pursuing new facilities from manufacturers such as Stellantis and Tesla, signaling a broader national push to attract advanced automotive manufacturing and related supply chains.