Chinese Automakers Rule Out Italy over Lack of Turnkey Factories

Chinese automakers looking to expand production capacity in Europe have ruled out Italy because the country lacks suitable turnkey factories, Italian industry minister Adolfo Urso said on Wednesday, October 14.

Urso confirmed that Chinese auto industry representatives, including BYD European adviser Alfredo Altavilla, inspected Italian facilities and met government officials several times without finding viable production sites.

The Search for Turnkey Sites

Chinese car companies touring Europe want operational manufacturing facilities that can start vehicle assembly immediately. Brussels is preparing regulations that will impose minimum local content requirements on electric vehicles sold across the European Union, prompting Chinese brands to secure localized assembly footprint within the trading bloc.

Urso told lawmakers in Rome that Chinese delegations inspected several Italian facilities. None met their operational criteria.

“They are touring Europe and what are they asking for? A turnkey factory,” Urso told lawmakers in Rome, referring to a production site that would be ready to operate immediately.

Stellantis Retains Italian Footprint

Italy holds only one domestic volume car manufacturer, Stellantis. Urso explained that Stellantis decided against selling or transferring any of its Italian plants to foreign competitors, choosing instead to pursue joint production partnerships with Chinese automakers.

Because Stellantis kept all its Italian production lines open, no idle, ready-to-run auto plants exist in Italy for foreign buyers to take over. That stance closed the door on Chinese automakers looking for standalone acquisitions in the country.

BYD Shifts Focus to Western Europe

The refusal to sell legacy plants directly conflicts with the expansion playbook favored by major Chinese electric vehicle brands. BYD rejected shared-production arrangements and joint ventures in the country, seeking full ownership of its European manufacturing assets instead.

Altavilla confirmed that BYD is concentrating its factory acquisition efforts on alternative European markets, specifically Spain and France. Securing dedicated assembly lines allows Chinese electric vehicle groups to maintain direct control over supply chains, production quality, and proprietary technology.

European Manufacturing Timelines

Automakers from China face mounting pressure to finalize European production locations before the European Commission enacts stricter local assembly mandates. Companies that fail to establish domestic production lines risk tariffs and regulatory barriers on imported completely built-up units.

The next phase of European expansion now rests on negotiations with French and Spanish authorities, where Chinese carmakers continue to evaluate industrial sites capable of rapid commissioning.