BYD is actively seeking a site in Mexico to establish a plant aimed at expanding its presence in the local market, BYD Americas CEO Stella Li revealed to Reuters on February 28.
The planned plant, with an annual capacity of 150,000 vehicles, is expected to be operational by the end of the year, according to Li. The company is currently evaluating locations in central and southern Mexico, opting against northern regions near the United States to avoid higher transportation costs.
See also: BYD Rules Out Launching Passenger EVs in the US, Citing Market Complexity and Political Factors
“Our plan is to build the facility for the Mexican market, not for the export market,” Li emphasized, signaling a strategic focus on domestic sales.
BYD introduced its Dolphin compact electric vehicle (EV) to the Mexican market in September 2023, marking its fourth model in the country alongside the Han, Tang, and Yuan Plus.
Earlier reports from Nikkei indicated BYD’s consideration of Mexico as a potential hub for exporting EVs to the US. Zou Zhou, BYD’s Mexico manager, highlighted Mexico’s importance as a market with significant growth potential.
See also: BYD Explores Mexican EV Plant for US Export Hub
While specific details on the plant’s location were not disclosed, Nuevo Leon in the north and the Bajio region in central Mexico are among the leading options, according to the Nikkei report. Southern regions, including the Yucatan Peninsula, are also under consideration.
BYD’s plans come amidst a competitive landscape, with rival Tesla (NASDAQ: TSLA) announcing its intentions to build a gigafactory in Nuevo Leon. Despite this, BYD remains a strong contender, having surpassed Tesla in fourth-quarter 2023 passenger BEV sales, with 526,409 vehicles sold compared to Tesla’s 484,507.
Market research firm TrendForce predicts that BYD is well-positioned to challenge Tesla for the BEV sales crown in 2024.
Beyond Mexico, BYD has expanded its global footprint with NEV plants in Uzbekistan, Brazil, Thailand, and Hungary.
