Chinese competitor Tesla has changed the candidate for the third plant in Europe: it is considering Spain

China's largest electric car manufacturer Build Your Dreams (BYD) is considering Spain as a prime candidate for the construction of its third car plant in Europe. This was reported by writes Reuters.

BYD's plant in Spain will join two other planned European facilities – the in Hungary and Turkey. All three plants are designed to increase production and will help BYD to strengthen competition with Tesla.

In March, Reuters reported that BYD was considering other countries to build its third European plant, including Germany. Spain was not previously known to be a candidate.

According to one source, BYD prefers Spain because of its relatively low production costs and clean energy grid. However, the final decision on the plant has not yet been made.

Spain also aims to become an automotive center and is expected to introduce more favorable policies to support the sector.

But any decision to build plants in Europe will require the approval of the Chinese authorities. And this step may be complicated by the trade conflict between Beijing and the West.

BYD wants to establish local production of all cars sold in Europe over the next three years.

In recent months, the electric vehicle manufacturer's sales have surpassed Tesla's in Europe, while the Chinese manufacturer is increasing its market share as consumers are disappointed in Tesla.

• European automotive industry by 2030 eight plants are threatened with closurebloomberg calculated. The main reason is weak demand for cars and competition with China.