(Reuters) -China’s No. 1 automaker BYD considers Spain to be its top candidate for a third car factory to serve the European market, two people briefed on the matter told Reuters, as the company seeks to grow sales on the continent.

A BYD assembly plant, joining two other planned factories in Hungary and Turkey, would be a significant boost for the carmaker that competes with Tesla, and would also bolster Spain’s aim of becoming a major hub for electric vehicle production.

One of the sources said Spain is favoured by BYD because of its relatively low manufacturing costs and clean energy network.

While it is known that BYD has been looking for a third plant to serve the European market, Spain’s emergence as a frontrunner has been previously unreported.

ANY DECISION NEEDS SIGN-OFF IN CHI

See Full Page