BYD to establish electric vehicle factory in Mexico as export hub to the United States

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14th February 2024 – (New Mexico) BYD Co. Ltd., a prominent Chinese electric vehicle (EV) manufacturer, is set to establish a new factory in Mexico, with the aim of creating an export hub to the United States. This move comes as BYD recently surpassed its primary competitor, Tesla, to become the world’s leading EV maker in terms of sales. The Mexico head of BYD informed Nikkei, a Japanese news outlet, about the company’s plans.

According to the report, BYD has initiated a feasibility study for the proposed Mexican plant and is presently engaged in negotiations with officials regarding various aspects, including the factory’s location. While BYD predominantly focuses its sales in China, the company is striving to expand its global presence. In addition to increasing Chinese exports, BYD is establishing new manufacturing facilities in foreign countries.

Mexico’s automotive sector is renowned for hosting several top global players and is closely integrated with the North American market. “Overseas production is indispensable for an international brand,” remarked Zhou Zou, the country manager of BYD Mexico, in an interview with Nikkei. This statement emphasizes the significance of expanding production beyond China for BYD’s growth as a global brand.

Moreover, BYD has ambitious plans for Latin America, as it intends to invest 3 billion reais ($620 million) in a new industrial complex located in northeastern Brazil. The proposed complex, spanning three plants, will be constructed in the state of Bahia, where a Ford plant, which ceased operations in 2021, previously stood.