BYD’s plans to build a Mexican EV factory are back on, company VP hints

Four months aft announcing it was canceling plans to physique a manufacturing works successful Mexico, Chinese electrical conveyance and artillery shaper Build Your Dreams (BYD) is said to beryllium reconsidering its decision.

BYD firm vice president Julián Villarroel told reporters successful Guadalajara Wednesday astatine Expo Transporte ANPACT 2025 — a large commercialized amusement for the automotive transport manufacture successful the Americas — that the company’s renewed involvement is based connected its presumption arsenic the lone electrical conveyance (EV) shaper that produces its ain lithium batteries.

BYD sells cars successful Mexico, specified arsenic the constabulary vehicles shown here, but it scrapped plans to physique a works successful this country. That whitethorn change, according to caller comments by its vice president. (BYD/on X)

“We are the world’s largest shaper of lithium batteries,” Villarroel said. “This integration, since the artillery represents a important portion of the vehicle’s cost, allows america to connection competitory prices.”

Villarroel said that arsenic portion of its decision-making process the institution is lobbying Mexican lawmakers to exempt electrical vehicles from a 50% tariff connected imports from countries with which Mexico has nary commercialized agreements.

“We’re arguing that electrical vehicles shouldn’t beryllium included successful the tariff bundle … due to the fact that of their interaction connected pollution,” helium said, declining to connection immoderate details astir the negotiations.

While describing the connection to enforce tariffs arsenic “understandable,” Villarroel insisted “you ought not to taxation electrical mobility.”

In August 2024, the paper El Economista reported that BYD was considering 3 locations successful Mexico for an electrical car plant, citing taxation advantages, absorption enactment and preferential prices.

Earlier this year, the deficiency of clarity successful U.S. tariff plans for the automotive sector, arsenic good arsenic geopolitical tensions, forced the institution to rethink its concern strategy.

Now BYD insists that “it is  “here to stay,” describing Mexico and Brazil arsenic “key markets for our enlargement successful the EV assemblage successful Latin America.”

The institution is expected to contented an authoritative connection by the extremity of the year, Villarroel said, adding that “Our volition is to enactment successful Mexico, to broaden our beingness successful Latin America.”

The quality of BYD’s revived involvement successful establishing a manufacturing works successful Mexico has sparked rumors that it mightiness beryllium among those companies funny successful acquiring the Nissan works successful Cuernavaca, slated for closure successful March.

Nissan announces plans to adjacent its historical Cuernavaca plant, moving accumulation to Aguascalientes

BYD’s lone North American works is located successful Lancaster, California, which produces buses. Presently, its works successful Camaçari, Brazil, serves the Latin American market.

El Economista said that successful summation to BYD, Chinese rivals Changan and MG person confirmed their involvement successful mounting up operations successful Mexico. None of the 3 person made notation of the Nissan facilities conscionable 90 minutes southbound of Mexico City successful the authorities of Morelos.

Villarroel was astatine the commercialized amusement successful Guadalajara to be the motorboat of the company’s caller cargo vans, besides known arsenic last-mile transportation units.

He said that 700 BYD trucks are already operating successful Mexico and the institution expects to adjacent retired the twelvemonth with 1,200 units sold, portion adjacent year’s people is 5,000 units.

With reports from El Economista and La Jornada

Editor’s note: A erstwhile mentation of this nonfiction referred to MG arsenic a British brand. While the marque originates successful Britain, it is present owned by the Chinese institution SAIC and headquartered successful Shanghai.