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Chinese electric car manufacturer BYD Co. Ltd. is considering setting up a manufacturing plant in Mexico to create an export hub to the United States, Japanese newspaper Nikkei reported, citing a company executive in the country.
BYD, which recently overtook Tesla as the top electric vehicle maker by sales in the last quarter, is conducting a feasibility study for the new factory and is in negotiations with national and local government officials in Mexico to determine the location and other terms, according to Nikkei. Zhou Zou, CEO of BYD Mexico, stressed the importance of international production for a global brand.
In addition, BYD already has an electric vehicle plant in Bahia, Brazil, and plans to invest about 3 billion reais (about $605.94 million) in a new plant in the country. In 2023, the company announced this investment in an industrial complex in northeastern Brazil, on land previously occupied by a Ford plant that closed in 2021.
Stella Li, BYD's global vice president, mentioned in an interview in September that the company is considering the possibility of establishing manufacturing operations in Mexico to supply both the local market and the broader Latin American market. However, no specific date has been set for this project.
BYD has been cautious about its plans in Mexico, previously denying claims by Nuevo Leon Governor Samuel Garcia regarding an investment in the region. In 2023, BYD experienced a 61.9% growth in sales, reaching approximately 3.02 million electric vehicles sold.
