BYD has paused its plans to establish an electric vehicle (EV) manufacturing facility in Mexico, citing geopolitical tensions and ongoing uncertainty surrounding U.S. trade policies under President Donald Trump’s administration, according to a Bloomberg report.
The decision follows months of speculation about BYD’s expansion in North America. BYD executive vice president Stella Li said the automaker remains committed to growth in the Americas, but emphasized that the company will hold off on further investment until the political landscape becomes clearer. “We want to wait for more clarity before making our decision,” Li stated during an interview in Bahia State, Brazil.
Earlier this year, BYD had been exploring sites in Mexico for a new factory, a plan originally disclosed in 2024. However, the search was put on hold last year as the company awaited the outcome of the U.S. presidential election.
Further complicating the matter, the Financial Times reported in March that the Chinese government delayed its approval of the project over concerns that BYD’s smart vehicle technologies could be transferred across the border into the U.S.
While the Mexico plant is on hold, BYD continues to expand globally. On July 1, the company officially launched production at its new passenger vehicle factory in Brazil, its first such facility outside Asia.
Additional factories are currently operational in Uzbekistan and Thailand, with construction underway in Hungary, Turkey, and Cambodia.
