BYD Co. has confirmed ongoing negotiations with Stellantis and other European carmakers regarding the acquisition of underutilized factories, including locations in Italy. This move is part of BYD's strategy to extend its international footprint amid waning demand and a price war in the Chinese market. "We are looking for any available plants in Europe because we want to utilize this kind of spare capacity," said Stella Li, BYD's executive vice president [1, 2].
BYD's preference is to operate these factories independently instead of through joint ventures, as Li explained, believing that direct management would be "simpler" [3]. The company is particularly interested in the struggling Maserati brand, which recorded a loss nearing 840 million euros in 2025, describing it as "very interesting" [2, 3].
Stellantis factories, such as the Cassino plant, are currently running at minimal capacity, with production days dwindling to approximately 5 to 6 days per month and a year-on-year production decrease of 37.4% [3]. The current environment fosters high operational costs and intense competition, incentivizing BYD to seek additional plants that can mitigate these challenges.
Earlier this year, Stellantis initiated a strategic partnership with Leapmotor, focusing on electric vehicle (EV) production in Spanish facilities, reflecting its efforts to adapt amidst changing market dynamics [1, 2].
As part of its expansion strategy, BYD is also pursuing production facility projects in Hungary and Turkey. Utilizing existing factory space instead of building new plants will enable BYD to reduce production timelines and circumvent EU tariffs [4].
Looking ahead, BYD's strategy involves securing underutilized manufacturing capabilities while Stellantis continues its discussions with various industry partners without confirming specific agreements with BYD [2, 3].
