BYD considers factory in France to expand European production

Chinese electric vehicle maker BYD is studying plans to build an automotive factory in France. Executive Vice President Stella Li confirmed the move in an interview with BFM Business on October 12, 2026, noting that France is on the shortlist as BYD targets two additional manufacturing facilities in Europe.

The prospective French facility would add to BYD's existing European production footprint in Szeged, Hungary. The Hungarian electric vehicle assembly site represents a planned investment of 4.0 billion euros, or 4.5 billion dollars, with an initial production capacity of 150,000 vehicles per year that is designed to reach a long-term capacity of 300,000 vehicles annually.

A manufacturing presence inside the European Union offers relief from European import restrictions. Beyond the standard 10.0% import duty on passenger cars, the European Union levies additional countervailing tariffs ranging from 7.8% to 35.3% on electric vehicles imported from China, including an extra 17.0% duty specifically applied to BYD. In addition, Chinese hybrid passenger vehicles face an annual European Union import quota cap of 350,000 vehicles per year.