<span>STORY: China’s No. 1 automaker BYD sees Spain as a top candidate for a third car factory to serve the European market.</span><span>That’s what two sources told Reuters, as the company seeks to grow sales on the continent.</span><span>A BYD assembly plant, joining two other planned factories in Hungary and Turkey, would be a significant boost for the carmaker.</span><span>And would also bolster Spain’s aim of becoming a major hub for EV production.</span><span>One of the sources said Spain is favoured by BYD because of its relatively low manufacturing costs, and clean energy network.</span><span>A third source cautioned that the company has not communicated any final decision.</span><span>And was still considering other countries besides Spain.</span><span>The decision could come before the end of the year, but will need to be approved by Chinese regulators.</span><span>Both Spain’s Industry Ministry and BYD declined to comment.</span><span>BYD’s sales in Europe jumped 280% in the first eight months of the year from the same period in 2024.</span><span>That was after the automaker began selling plug-in hybrids as well as fully electric cars.</span>