BYD pours cold water on its hypothetical factory in Spain

BYD does not have a plan on the table to open a factory in our country. At least, that is what Alberto de Aza, general director of BYD for Spain and Portugal, maintains, who in an interview with EFE has stated that the company is focused on its Hungarian factory. According to De Aza, there are neither production problems nor are there intentions to open a plant in Spain.

BYD is interested in Spain. Spain has sounded strong on two occasions to be the home of a BYD car production plant for Europe. He did it first in 2023 when it was learned that the company was touring Europe looking for a location to a factory. Before the end of that same year, we knew that Hungary had been chosen.

Now, information has suggested that BYD is once again studying the opening of a factory. And, according to ReutersSpain was once again one of the first candidates. Its operating costs and good performance in the country seemed to be two incentives to take into account for the future.

There are no plans. That is what Alberto de Aza, general director of BYD for Spain and Portugal, answered in an interview with EFE. The head of the company in our country has indicated that “there is no specific plan at this time to implement a production center in Spain.”

The response is a bucket of cold water to the information that indicated that Spain was the first on the starting line of this new race. In fact, just a few days ago the Generalitat of Catalonia confirmed that they had held conversations with company representatives. And shortly before, in October, the De Aza spoke of Spain as “an ideal place” to expand the company’s European manufacturing.

For now, Hungary. At the moment, BYD seems to be focused on opening its plant in Hungary. Everything indicates that “you’ll see later.” And the company has started very strongly in our country but a good part of the European market is resisting. The commitment to plug-in hybrids at attractive prices, such as the BYD Atto 2 DM-i It is confirmation that they try to find solutions and alternatives.

To this we must add that the company has faced some complications related to its Hungarian plant. The first is whether you are using enough local employees. The second is whether it is going to create a sufficiently dense industrial network around it.

complicated lace. BYD is not the only company that is in the eye of the European Union for how they manufacture (in this case, hope to manufacture) their cars on European soil. At the moment, electric cars coming from China are taxed with specific tariffs for each company but not so with plug-in hybrids. To avoid this specific and general tariff (10% on imports arriving from China), Chinese manufacturers talk about producing in Europe.

However, the European Union closely monitors how these cars are manufactured. And there is talk of producing vehicles using almost assembled kits that arrive in Europe by boat and are given the finishing touches on European soil. Something like if a puzzle of 1,000 pieces arrived assembled without joining four large groups of them.

This, European regulators assure, might not be enough to skip tariffs. It is a practice that already has delayed the arrival of the electric Omoda 5 to the Barcelona factory, for example.

Spain, why? To the above we must add a detail: Spain has moved into a complicated game of balance with China. In addition to the fact that our country offers lower operating costs (labor or energy) to manufacturers compared to other European nations, the truth is that there is another point of view.

In the final approval of tariffs on Chinese electric cars, Spain veered from a resounding “yes” to abstention. Shortly after its application, it was leaked that the Chinese State had ordered its manufacturers stop all investments in the countries that supported those tariffs. Italy, for example, would have been one of the most affected countries.

Since then, it has been leaked that BYD was interested in Spain to house a new European factory. But also CATL reached an agreement with Stellantis to launch a battery production plant in Aragon. It is no coincidence that Spain has pampered its relations with China lately.

Photo | Mercedes and Xataka

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