BYD (HKG:1211, SHE:002594) sees the need to produce auto batteries in Europe as it ramps up car manufacturing in the region, Reuters reported Wednesday, citing the auto maker's special adviser Alfredo Altavilla.

Altavilla said the group is weighing whether to prioritize a third assembly plant or a battery factory, stressing that importing batteries from China "does not make sense" if assembly operations are local, according to the report.

BYD is ramping up capacity with a new plant in Hungary set to begin production later this year and another facility in Turkey expected in 2026, together capable of producing about 500,000 vehicles annually.

Potential sites across Europe are reportedly under consideration, with factors such as energy costs playing a key role.

Altavilla dismissed concerns raised by Warren Buffett's Berkshire Hathaway exiting its 17-year investment in BYD, saying the US investor made a 20-fold return and "did what Berkshire Hathaway does: buying, earning and selling."

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