BYD is exploring the possibility of establishing an electric vehicle (EV) plant in Mexico to serve as an export base to the US, as stated by a company executive in a report from Nikkei. Zou Zhou, BYD Mexico’s country manager, emphasized the necessity of overseas production for international brands, noting Mexico’s status as a key market with significant potential.
The company has initiated a feasibility study for the plant and is currently in discussions with national and local government officials regarding its potential location and other related details. While the exact site has not been disclosed, Nuevo Leon in the north and the Bajio region in central Mexico are reportedly leading contenders. Additionally, locations such as the Yucatan Peninsula and other parts of southern Mexico are being considered.
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The decision to consider Mexico for production is largely motivated by the advantage it offers in reducing export costs to the US. The US-Mexico-Canada agreement imposes stringent North American manufacturing quotas on automakers seeking tariff-free exports to the US market, making Mexico an attractive location for production.
In September 2023, BYD introduced the Dolphin compact EV in Mexico, marking its fourth model in the country alongside the Han, Tang, and Yuan Plus. BYD has rapidly emerged as the world’s largest new energy vehicle (NEV) manufacturer, with half of its sales comprising battery electric vehicles (BEVs) and the other half plug-in hybrid electric vehicles (PHEVs).
In the fourth quarter of the previous year, BYD sold 526,409 passenger BEVs, surpassing Tesla’s 484,507 vehicles for the first time. For the entire year 2023, BYD sold 3,024,417 NEVs, reflecting a 62.3 percent year-on-year increase. While BYD is expanding into overseas markets, their contribution to overall sales remains limited, with overseas NEV sales accounting for only 8 percent of total sales in 2023.
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BYD’s efforts in international expansion include the construction of a passenger car plant in Thailand, which commenced in March 2023 and is anticipated to begin production in 2024 with an annual capacity of approximately 150,000 units. Similarly, the construction of BYD’s plant in Uzbekistan began in May 2023, with production commencing the following month.
In July 2023, BYD announced plans to establish a large manufacturing base complex in Brazil, slated to commence production in the second half of 2024, with an annual capacity of 150,000 vehicles for the NEV line. Furthermore, on January 30, BYD signed a preliminary land purchase agreement with the government of Szeged in Hungary for its passenger car plant.
