BYD explores Euro expansion

GIANT Chinese automaker BYD is exploring a deeper foothold in Europe, holding talks with Stellantis and other carmakers over the acquisition of underutilised manufacturing plants while also signalling interest in struggling luxury marque Maserati.

The developments underscore the intensifying pressure on Europe’s traditional automotive industry as Chinese manufacturers increasingly shift from export-led expansion to direct industrial participation within the region.

BYD executive vice-president Stella Li confirmed the company is actively exploring opportunities to acquire spare European production capacity.

“We are talking to not only Stellantis, but we’re also talking to other companies too,” she said.

“We are looking for any available plant in Europe because we do want to utilise this kind of spare capacity.”

The talks come as Stellantis grapples with significant overcapacity, slowing EV demand and a major strategic reset.

The automaker recently took a €22 billion ($A36b) write-down linked to its electrification strategy and has begun repositioning brands and production assets across Europe.

Its Cassino plant in Italy – where the Maserati Grecale is built – is operating well below capacity, producing fewer than 3000 vehicles in the first quarter while reportedly running just a handful of days per month.

The historic Mirafiori plant in Turin has also seen output dramatically reduced.

Stellantis has already shown willingness to repurpose idle capacity, recently flagging the possible sale of a Spanish factory to Chinese partner, Leapmotor.

More intriguing is BYD’s apparent interest in Maserati itself, the iconic brand often speculated of late as being up for grabs.

Ms Li described the Italian luxury brand as “very interesting”, fuelling speculation Stellantis could ultimately consider broader restructuring options for the marque.

Maserati’s decline has been precipitous…

Global sales fell to just 11,127 vehicles last year, down from nearly 27,000 in 2023, while Australian deliveries slumped to 264 units.

China – once expected to be a growth market for premium European brands – has also disappointed, with Maserati selling fewer than 1000 vehicles there.

By contrast, Chinese luxury newcomer Maextro sold more than 1100 examples of its single S800 flagship in April alone.

BYD is already constructing its own European factory in Hungary, but acquiring existing facilities would allow faster scaling while sidestepping regulatory barriers and political scrutiny surrounding Chinese vehicle imports.

The strategy also mirrors a broader trend of Chinese manufacturers embedding themselves deeper into Europe’s automotive ecosystem rather than simply exporting finished vehicles.

For Stellantis, the situation is especially notable given its own increasing reliance on Chinese partnerships, including Opel’s planned EV collaboration with Leapmotor, and Peugeot’s upcoming China-based export production strategy.

If Maserati were ever to be sold or strategically partnered, it would mark one of the most significant shifts in European automotive ownership in years.

However, the brand’s luxury positioning presents challenges…

BYD’s strength lies in scale, EV manufacturing and affordability, not traditional European luxury craftsmanship – though the Chinese market has demonstrated growing appetite for domestically developed premium brands.

At the moment, BYD says no formal action has been taken.

But the mere possibility highlights the shifting balance of power in the global automotive industry, where Chinese players are increasingly moving from challenger mode to “consolidators”.