BYD to Double European Dealers to 2,000 by 2026, Confirms Multi-Factory ‘Localization’ Strategy

Chinese automaker BYD is aggressively accelerating its European expansion, confirming plans to double its sales network to 2,000 locations by the end of 2026. The move is part of a broad “localization” strategy to build vehicles inside Europe, effectively neutralizing the threat of EU import tariffs according to a report from Reuters.

This news confirms BYD is moving from a simple import-based seller to a full-scale, embedded European automotive power. The strategy, laid out by a top executive, includes a rapid dealership rollout supported by a network of at least three European factories, solidifying the company’s long-term ambitions on the continent.

An Aggressive Sales Network Expansion

Speaking at an event in Frankfurt, Maria Grazia Davino, BYD’s regional managing director for Europe, detailed the massive retail push. “By the end of 2025, we will be present with 1,000 points of sale in Europe, and next year we’re going to double (that),” Davino stated.

This plan would see BYD establish 2,000 sales locations across the continent by the end of 2026. Davino explained the strategy is essential for winning over European consumers. “In line with successful competitors, we need to have proximity and win proximity to the European customers,” she said.

‘Localization’ Strategy Takes Shape

The rapid retail expansion is being built in parallel with a multi-factory production plan—a “long-term localisation strategy,” as Davino called it. This move is widely seen as a direct strategic counter to potential EU anti-subsidy tariffs aimed at Chinese-made EVs.

Davino pointed to the company’s first European plant in Hungary, which is on track to open by the end of 2025. This will be followed by a planned second factory. Reports indicate this second facility will be in Turkey, a $1 billion project with a 150,000-vehicle capacity set to open by the end of 2026. This location would allow BYD to leverage the EU-Turkey Customs Union to bypass import duties.

Furthermore, BYD is already planning a third production site. Davino confirmed the company is “weighing a third production site in Europe,” with Spain emerging as a “top contender” due to its manufacturing infrastructure and low-cost clean energy.

Sales Momentum Fuels Growth

This aggressive expansion is funded by massive sales growth. BYD’s European sales (including both BEVs and plug-in hybrids) more than tripled to 80,807 vehicles in the first nine months of 2025.

Davino noted that establishing the brand in a mature market is a significant undertaking. “Localising in a mature region like Europe is a very important project,” she said. “It requires knowledge, dedication, investments, and resources at all levels.”

EVXL’s Take

This isn’t just an expansion plan; it’s the execution of a multi-year geopolitical chess move. While European politicians were busy threatening tariffs, BYD was busy planning how to make them irrelevant. This three-factory, 2,000-dealer strategy confirms our long-standing analysis: BYD isn’t just entering Europe; it’s planning to conquer it from within.

The EU’s anti-subsidy investigation, which we’ve covered extensively, was always going to trigger this response. BYD’s “localization” strategy is a brilliant counter-move. By building cars in Hungary, Turkey, and Spain, BYD transforms from a Chinese importer into a local European manufacturer, employing European workers and embedding itself in the supply chain, making any future tariffs politically difficult and strategically moot.

This strategy—which started with the official announcement of its Hungary factory—is now in high gear. While legacy automakers in Europe and the U.S. are delaying EV targets and scaling back production, BYD is hitting the accelerator. They are using their massive profits and surging sales—a stark contrast to Tesla’s recent sales slump in the region—to fund a ground-war infrastructure build-out that competitors will find impossible to match.

What do you think? Share your thoughts in the comments below.