BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) and Xpeng Inc. (NYSE:XPEV) are reportedly in talks with manufacturers to incorporate their underutilized production facilities in Europe as it looks to bolster their overseas presence.

BYD To Incorporate Underutilized Plants?

BYD held talks with Stellantis NV (NYSE:STLA) and other manufacturers to take over some of their plants in Europe, Bloomberg reported on Wednesday.

Read Also: China Is Investigating EV Makers As Owners Say Their Cars Lost Up To 125 Miles Of Range After Updates—And Tesla, BYD Are Being Dragged Into The Debate

The Chinese automaker was “talking to not only Stellantis,” but with “other companies too,” BYD’s Executive Vice President Stella Li said, adding that the company was looking for plants all over Europe to “utilize this kind of spare capacity."

Li also outlined possible investments in struggling automakers in Europe, as well as sharing that the automaker would want to operate the plants on its own rather than through joint ventures, the report said.

Xpeng To Take Over VW Plant?

Meanwhile, Xpeng also reportedly held talks with Volkswagen AG (OTC:VLKAF) to explore possible locations to set up plants after its facility in Austria was running out of capacity, according to a report by the Financial Times on Wednesday. The company could also explore building its own plant, the report said.

Chinese EVs in Europe

Chinese automakers have been expanding in Europe as demand falls in the Chinese domestic market. BYD recorded selling 182,025 units in April, which represented a 32.3% YoY decline. However, BYD’s European registrations rose 155% in the first quarter of 2026.

BYD also signed a deal with James Bond actor Daniel Craig to promote its luxury brand Denza in Europe. The automaker will incorporate Craig to promote models launched this year through marketing materials and TV commercials.

Tesla European Sales

Tesla Inc. (NASDAQ:TSLA), on the other hand, posted sales growth in markets like France, the Netherlands, Denmark and Sweden, where sales grew 112%, 23%, 102% and 111%, respectively. However, sales were also down significantly in countries like Norway, where Tesla recorded a 61% decline, attributable to the rolling back of incentives.

Read Also: North American EV Demand Drops Sharply Despite Rising Global Sales, Iran War

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