Chinese auto giant BYD is exploring the possibility of building a plant in France as part of its strategy to expand production in Europe. This was announced by the company's executive vice president Stella Li in an interview with the French television BFM Business, quoted by Reuters.
The statement was made on October 12 during the Paris Motor Show, where Chinese manufacturers are strengthening their presence in the European market.
“France is among the countries we are considering because your electricity prices are very competitive“, Li said.
According to her, the company is carefully analyzing the possibilities of building a production base in the country.
BYD plans two more plants in Europe
The Chinese manufacturer is already preparing to launch its automobile production in Hungary, which is expected in the last quarter of 2026.
However, the company does not intend to limit itself to this project. According to Stella Li, BYD plans to build two more manufacturing plants on the European continent.
France is among the potential locations, but a final investment decision has not yet been announced.
European restrictions accelerate investment
BYD's plans come against the backdrop of increasing trade restrictions on Chinese cars.
In 2024, the European Union introduced additional tariffs on Chinese-made electric vehicles. As a result, Chinese manufacturers have increased exports of hybrid cars, which do not fall under the same additional tariffs.
According to Chinese customs data, hybrid car exports to the EU reached $7.5 billion in the first half of 2026, three times more than in the same period the previous year.
Meanwhile, Brussels and Beijing reached an agreement to limit imports of Chinese hybrid cars. The details of its implementation are still being specified.
The European Commission is also preparing new requirements for the use of local components in the production of electric vehicles.
Chinese manufacturers are increasing their presence
The European market is becoming increasingly important for the Chinese automotive industry amid weakening domestic demand.
Car sales in China fell by 20% in the first half of 2026, increasing pressure on local manufacturers to expand their operations abroad.
At the same time, Chinese car brands are increasing their market share in Europe. In the second quarter of the year, they reached a record 15% of the European electric vehicle market, up from 9.5% at the beginning of 2024.
Building factories in the EU would allow BYD to reduce its dependence on imports from China, limit transport costs and adapt to European regulatory requirements.
For France, the possible investment would mean an opportunity for new jobs and the development of the automotive industry. However, neither the size of the potential investment, nor the production capacity or the specific location of the future plant have been announced so far.