China’s leading automaker BYD is considering establishing its third European car manufacturing plant in Spain, according to people familiar with the matter. The move would complement BYD’s existing and planned factories in Hungary and Turkey. A final decision, requiring authorization from Chinese regulators, is expected before year-end. Spain’s appeal lies in low production costs, strong clean energy infrastructure, and cheap electricity. The potential investment aligns with Spain’s ambition to become a major EV hub, supported by a 5 billion euro ($5.4 billion) EU-backed incentive program. BYD’s European sales surged 280% in the first eight months of 2025.