BYD has sent a delegation to the Mexican state of Jalisco to explore the possibility of constructing an electric vehicle (EV) plant there, Bloomberg reported on March 9.
According to the report, BYD executives from China met with state officials last week, as well as with Chinese suppliers already established in Jalisco, such as Haitian, which manufactures machines for auto parts.
Roberto Arechederra, Jalisco’s economic development secretary, stated that BYD conducted a detailed analysis of the educational centers in the area and the population size near the potential plant location.
The construction of a Mexican plant could cost approximately $600 million, similar to the investment BYD made in its Brazilian EV plant, as reported by Bloomberg, citing a source familiar with the matter.
On February 14, Nikkei reported that BYD is considering establishing an EV plant in Mexico to serve as an export hub to the United States.
Zou Zhou, manager of BYD Mexico, emphasized Mexico’s importance as a market with great potential, according to Nikkei.
BYD’s competitor Tesla plans to construct a Gigafactory in Nuevo Leon state for the production of next-generation vehicles.
Stella Li, CEO of BYD Americas, told Reuters on February 28 that the company is in search of a location in Mexico to build a plant and expects to select a site by the end of the year. The plant is projected to have a capacity of 150,000 vehicles per year.
Li clarified that BYD’s ambitions in Mexico are focused on local sales, stating, “Our plan is to build the facility for the Mexican market, not for the export market.” She also mentioned that BYD is looking for factory locations in the central and southern regions of Mexico to avoid expensive transportation costs associated with reaching consumers in northern Mexico near the United States.
Earlier this month, BYD introduced the Dolphin Mini, a micro EV, in Brazil and Mexico, expanding its range of offerings in South America. The Dolphin Mini, known as the Seagull in China, is BYD’s most affordable model, complementing the company’s existing lineup, which includes the Dolphin, Han, Tang, and Yuan Plus in the Mexican market.
