BYD (01211-HK) announced two significant pieces of news on July 1: European Special Advisor Alfredo Altavilla stated at the Reuters Automotive Europe conference that the company is close to finalizing the acquisition of a second existing European car factory, with potential locations in Spain or France; the same day, sales data showed BYD delivered 557,090 battery electric vehicles (BEVs) globally in Q2 2026, exceeding market expectations for Tesla.
Progress on Selecting Second European Factory: Spain and France Top Candidates
Speaking at the Reuters Automotive Europe conference, Alfredo Altavilla said BYD is evaluating entering European production through the acquisition of existing facilities (brownfield investment) rather than building new factories from scratch, in order to shorten the construction timeline and start production faster. Currently, Spain and France are the most promising locations, with two teams having recently conducted site assessments in different places, bringing the company "quite close" to a final decision.
Altavilla noted that German factory competitiveness is relatively weak, and with low capacity utilization in local manufacturing, the appeal is limited. The selection process focuses on acquiring existing facilities, against the backdrop of the EU's "Made in Europe" policy encouraging local automotive production.
BYD Q2 and June Sales Data: Overseas Volume Up 94.7% YoY, China Down 22% YoY
According to sales data released by BYD on July 1, 2026, key metrics are as follows:
Q2 Global BEV Deliveries: 557,090 units, higher than the market estimate of approximately 396,500 units for Tesla in the same period
June Global Total Sales: 403,472 units, up 5.5% year-over-year, marking the second consecutive month of recovery growth
June Overseas Sales: 175,349 units, up 94.7% YoY, accounting for approximately 43% of total sales
June China Market Sales: Down 22% YoY, continuing a declining trend since May 2025
Cumulative European Sales in First Five Months of This Year: Exceeded 100,000 units, doubling from the same period last year
Full-Year 2025 European Sales: Close to 188,000 units, up 270% YoY
European Automaker Competitive Landscape: Volkswagen Evaluates Potential Layoffs of 100,000 Employees
Altavilla stated bluntly at the conference that European automakers trying to block Chinese brands from entering the market is "completely meaningless," and they should focus on improving their own competitiveness. He pointed out that Volkswagen's recent announcement of further cost cuts marks the first time the European automotive industry has truly recognized competitive pressure. Affected by EU tariffs, rising manufacturing costs, and intensifying competition from Chinese brands, Volkswagen is evaluating the largest restructuring plan in its history, with reports suggesting potential layoffs of 100,000 employees and the closure of four German factories.
Stellantis (STLA-US), meanwhile, is boosting capacity at its Spanish and French factories through joint ventures with China's Dongfeng Motor (600006-CN) and Leapmotor (09863-HK). Altavilla criticized the notion held by some in the European industry that Chinese automakers would be willing to share cutting-edge technology in exchange for only a minority stake, calling it "unrealistic" and emphasizing that the current situation is fierce market competition, not cooperative coexistence.
FAQ
Which country in Europe is BYD planning for its second factory?
According to a public statement by BYD European Special Advisor Alfredo Altavilla at the Reuters Automotive Europe conference on July 1, 2026, Spain and France are currently the most promising locations, with two assessment teams having completed site visits; the final location is subject to the company's official announcement.
What are BYD's Q2 global BEV deliveries and how do they compare to Tesla?
According to data released by BYD on July 1, 2026, Q2 global BEV deliveries reached 557,090 units; the market estimates approximately 396,500 units for Tesla in the same period; Tesla's official Q2 figures are subject to its own formal announcement.
Which markets are driving BYD's overseas sales growth?
According to BYD's June sales data released on July 1, 2026, overseas sales grew 94.7% YoY to 175,349 units, accounting for about 43% of total sales, serving as the main pillar offsetting a 22% YoY decline in the Chinese market; cumulative European sales in the first five months of this year exceeded 100,000 units, doubling from the same period last year, making it one of the fastest-growing overseas regional markets.
