Thursday, April 25, 2024
NewsBYD looking to establish a factory in Mexico

BYD looking to establish a factory in Mexico

  • BYD already has two factories planned in Thailand and Brasil.

  • The Chinese brand could shake things up in North America with its low-cost EVs.


 

The North American electric car market could soon be welcoming a new player. And this one doesn’t fall into the category of start-ups with lofty ambitions. Chinese automaker BYD is reportedly planning to build an electric vehicle plant in Mexico, according to a report from Nikkei Asia.

BYD Dolphin | Photo: BYD

BYD’s arrival on the doorstep of the United States – and even Canada, thanks to the free trade agreement between the three countries – comes as no surprise. By the end of 2023, the Chinese automaker had become the world’s largest producer of electric vehicles, even surpassing Tesla at the finish line. BYD’s range includes several affordable models, contributing to the brand’s success.

What’s more, BYD has already confirmed a massive investment in the construction of a factory in Brazil, while in Thailand, construction of a factory for this region of the globe is already underway.

BYD Seal | Photo: BYD

It was the brand’s Mexican director who told Nikkei Asia that BYD had its eye on Mexico for its next plant. Such a complex could even act as a distribution center for the USA, Canada, and other markets around the world.

A few automakers are also considering Mexico as a location for electric vehicle production, including Tesla, Kia, BMW and Stellantis, to name but a few.

This clause in the free-trade agreement obliges automakers to use a minimum of 75% of components manufactured in one of the three countries to benefit from tariff advantages. The possibility of a BYD plant on American soil should not be ruled out either. When an electric vehicle is assembled in the USA, it is eligible for this potential $7,500 tax credit.

BYD Dolphin | Photo: BYD

What’s more, if BYD succeeds in its bid to establish itself in North America, it will shake up the electric car market with more affordable models like the Seal, Atto 3 and Dolphin. BYD is also counting on a full range of electrified vehicles.

But at the time of writing, we’ll have to wait for an official announcement before we can believe that BYD products will arrive on our roads.

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