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Investing.com-- BYD (HK:1211) is considering Spain as its top candidate for a third car factory in Europe, Reuters reported on Tuesday, as the electric vehicle maker seeks to expand its footprint in the region.
A BYD plant in Spain will join two other planned factories in Hungary and Turkey, all three of which are intended to ramp up production and help BYD compete further with rival Tesla Inc (NASDAQ:TSLA).
Spain is preferred by BYD because of its relatively low manufacturing costs and clean energy network, Reuters reported, citing people with knowledge of the matter. But no final decision has been made on the plant.
Spain is also seeking to become an automaking hub, and is expected to dole out more friendly policies to support the sector.
But any decision on building factories in Europe will need approval from Beijing– a move that could be complicated by an ongoing trade conflict between China and the West.
BYD is seeking to locally manufacture all its European-sold cars within the next three years, Reuters reported.
The EV maker had outsold Tesla in Europe in recent months, with the Chinese EV maker gaining more market share as consumers soured on Tesla.