The Chinese firm says the site will build vehicles for the local market
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by Brad Anderson
March 1, 2024 at 09:34
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BYD is continuing its rapid global expansion and looking to lock down a location in Mexico for a factory that will be producing vehicles for the local market.
The chief executive of BYD Americas, Stella Li, has confirmed that the carmaker is assessing sites in a 200 km (124-mile) radius around Mexico City and plans to decide in the second half of this year. Li said BYD isn’t analyzing sites near the U.S. border because this would result in higher transportation costs for the majority of Mexican buyers.
While the U.S. has expressed concern about new auto rivals from China, Li said that Mexican officials have been receptive to the firm’s plans. Li did not reveal which of the brand’s existing, or future, models could be manufactured in Mexico.
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Fortune notes that last year, just 11,766 new battery-electric vehicles were sold in Mexico. There’s no doubt that BYD could help to increase that figure with some of its affordable models, like the Seagull, Dolphin, and Atto 3, but it also builds several compelling plug-in hybrid vehicles that could also prove popular in Mexico. The firm’s latest PHEV is the Qin Plus DM-i, starting at a mere 79,800 yuan or the equivalent of just $11,000.
Read: BYD Not Planning U.S. Entry Despite Building A Mexican Factory
During the same interview with Yahoo Finance, Li said that BYD does not intend to enter the U.S. market and unlike some other carmakers, will not build vehicles in Mexico and import them into the U.S. If BYD was planning a U.S. entry, it would be logical to construct its Mexican factory near the U.S. border, like Tesla is planning.
It is not just Mexico that BYD is targeting for growth. The company recently commenced construction on a plant in Brazil and the Dolphin has already become the nation’s best-selling EV.
