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



<h2>BYD To Incorporate Underutilized Plants?</h2>



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



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<p>The Chinese automaker was “talking to not only Stellantis,” but with “other companies too,” BYD’s Executive Vice President <strong>Stella Li</strong> said, adding that the company was looking for plants all over Europe to “utilize this kind of spare capacity.&#34;</p>



<p>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.</p>



<h2>Xpeng To Take Over VW Plant?</h2>



<p>Meanwhile, Xpeng also reportedly held talks with <strong>Volkswagen AG</strong> (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.</p>



<h2>Chinese EVs in Europe</h2>



<p>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.</p>



<p>BYD also signed a deal with James Bond actor <strong>Daniel Craig</strong> 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.</p>



<h2>Tesla European Sales</h2>



<p><strong>Tesla Inc.</strong> (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.</p>



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<p><em>Check out more of Benzinga’s Future Of Mobility coverage by</em> following this link.</p>



<p><em>Photo courtesy: Tada Images / Shutterstock.com</em></p>

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<p>BYD and Xpeng are in discussions with European manufacturers to utilize underutilized production facilities as they seek to expand their presence in Europe amid a slowdown in the Chinese EV market. BYD is negotiating with Stellantis and other companies to take over plants, while Xpeng is exploring options with Volkswagen for new locations. Despite a decline in domestic sales, BYD's European registrations surged by 155% in Q1 2026. Tesla, meanwhile, saw mixed results in Europe, with significant sales growth in some countries but declines in others due to reduced incentives.</p>

- BYD Co. Ltd. and Xpeng Inc. are seeking to enhance their overseas presence by negotiating with European manufacturers to utilize underutilized production facilities.  
- BYD is in discussions with Stellantis and other companies regarding plant takeovers and is looking to invest in struggling automakers in Europe, preferring independent operations.  
- Xpeng is exploring options with Volkswagen to establish new plants due to capacity constraints at its Austrian facility, highlighting the increasing expansion of Chinese EVs in the European market.

Tesla Rivals BYD And XPeng Turn Towards Europe Amid China EV Slowdown: Report