BYD’s European Factory Hunt Accelerates as 150 Billion Yuan Backstop Fuels Global Ambitions

Chinese EV giant BYD scours Europe for idle production sites, in talks with Stellantis and eyeing Maserati; board seeks 150 billion yuan guarantee to fund acquisitions and bypass EU tariffs.

The shift from import to local manufacture is reshaping BYD’s European playbook. The Chinese electric-vehicle giant is now actively scouting for idle production sites on the continent, with talks already underway with Stellantis and other established automakers. Vice-president Stella Li has made clear BYD wants full control, ruling out a joint venture and even eyeing struggling luxury marques — Maserati was singled out as particularly appealing. One potential target is Stellantis’s underutilised Cassino plant in Italy, a facility that could be converted quickly to EV output.

To backstop the global offensive, BYD’s board is seeking a guarantee framework worth 150 billion renminbi at the annual general meeting in Shenzhen on 9 June. The massive credit line, aimed at subsidiaries, would provide the financial firepower needed for factory acquisitions and other overseas investments. Shareholders will also vote on a proposed dividend of 0.358 Hong Kong dollars per share.

The expansion targets are ambitious. Management now forecasts worldwide sales of up to 5.5 million vehicles this year, split between a domestic market contribution of as many as 4 million units and 1.5 million exports. April already delivered a record overseas shipment of roughly 135,000 vehicles, underscoring the pace of international growth. In the UK, BYD currently tops the EV sales chart, and it overtook Volkswagen in overall sales in Brazil last month.

Analysts are taking note. JPMorgan rates the stock Overweight with a price target of 120 HKD, arguing that a European production deal would provide a fresh catalyst. The bank also sees a structural margin driver: by the fourth quarter of 2026, vehicles priced above 200,000 yuan are expected to account for over 30% of domestic sales, lifting profitability.

Yet the home market is proving less forgiving. April sales dipped marginally month-on-month to around 181,500 units, and Citigroup calculates BYD needs to deliver nearly 380,000 vehicles in June to maintain a positive year-on-year growth trend. The drag is partly policy-related: China halved EV tax incentives for 2026 and 2027, prompting customers to pull forward purchases into 2024 and weighing on first-quarter demand. JPMorgan expects a sharp rebound in the second quarter, forecasting a roughly 60% sequential jump in sales.

The stock, however, has not kept pace with the operational narrative. BYD’s H-share closed the week in Hong Kong at 96.45 HKD, leaving it nearly 15% lower over the past month. Trader inventory in China has held steady at the equivalent of about two months of turnover, offering little near-term relief.

A concrete factory deal — whether for an existing Stellantis site or another acquisition — could change that. With a layer of financial guarantees already in the works, BYD is positioning itself to bypass EU tariffs and embed production deep inside the region’s automotive heartland.