EV maker BYD to setup plant in Mexico for global sales

Electric vehicle (EV) maker BYD looking for a manufacturing plant in Mexico to grab tariff-free shipments in North America.

Zhou Zhou, Manager of BYD Mexico told Nikkei Asia that the company is looking for a location to build an EV plant in the country. This move by the Chinese carmaker has expanded its global reach.

BYD last year surpassed Tesla in EV volume shipments but most of these sales only come from China and it has around 8% of the shares from global EV buyers.

These overseas manufacturing plants will help BYD to increase output with global standards. The company opened its Thailand facility this year and also building a plant in Hungary. It is building another plant in Brazil with a $605 million investment.

BYD said it has 230 retail stores across 19 countries and sells five new models – BYD Han, Tang, Atto 3, Seal, and Dolphin ranging from hatchbacks, sedans, and SUVs.

BYD Han

The Chinese EV maker is currently holding discussions with the local government for a suitable location and become aware of other terms to set up a manufacturing plant.

BYD’s country chief has not shared a specific location but Zou might be interested in Nuevo Leon and the Bajio region. Yucatan Peninsula and other places in southern Mexico are also on the eligible candidate list.

With this setup, the automaker could aim for export cost reduction in the U.S. Mexico, Canada, and the United States have a free trade agreement but it may not appear friendly for Chinese car makers due to strict import-export controls.

Moreover, the vehicles will not qualify for local EV subsidy programs with the use of Chinese-originated battery components.