Industrial ambitions. Chinese automaker BYD is actively scouting for its third European manufacturing plant, and Italy has emerged as a promising contender.
- On Tuesday, Alfredo Altavilla, the company’s special adviser for the European market, confirmed that the selection process is underway and will conclude by the end of the year, though no final decisions have been made yet.
- He also stressed that Europe cannot compete with China in EV and autonomous vehicle technology and suggested deeper collaboration: “Fighting China is futile—cooperation is a smarter move.”
Market and policy challenges. Altavilla stressed that locating the new plant in a country unfavourable towards Chinese automakers would be “challenging”—Italy, for instance, has supported EU tariffs against Chinese vehicles. “But things can still change,” he said.
- He noted that the Green Deal complicates the transition to full electrification, arguing that extending the mandate to plug-in hybrids is necessary.
- BYD is also considering developing a proprietary charging network in Europe, similar to its strategy in China.
Supplier partnerships. Following a recent meeting in Turin with Italian component suppliers, BYD has already secured contracts for its factory in Hungary with major players such as Brembo, Pirelli, and Prima Industrie.
- Altavilla reassured that suppliers will not be forced to relocate and will instead position themselves in proximity to BYD’s new facility.
A transatlantic contrast. Altavilla compared EU and US approaches to Chinese investments, calling Washington’s stance under President Donald Trump “more constructive.”
- “Trump’s position is clear: invest or pay tariffs. That’s a legitimate way to protect national interests. On the other hand, the EU imposed tariffs first and then tried to attract investments—an inverted strategy,” he argued.
