BYD, the world’s leading manufacturer of battery-electric vehicles, isn’t resting on its laurels and is eyeing expansion beyond its home market of China. The company is considering the establishment of a new factory in Mexico, a move seen as crucial for its global growth strategy.
In a recent interview with Nikkei Asia, BYD Mexico country manager Zhou Zou emphasized the vast potential of the Mexican market and the importance of overseas production for the brand’s expansion plans. The feasibility study for the Mexican plant is already underway, with discussions ongoing with local and national governments regarding potential locations.
Establishing a manufacturing facility in Mexico would not only facilitate BYD’s expansion into the United States but also make it eligible for federal EV tax credits while benefiting from lower labor costs. Other automakers like Kia, BMW, Stellantis, and Tesla have also announced plans to build EV factories in Mexico.
Despite a slight slowdown in global EV sales last year, Zou remains optimistic about the growth prospects, highlighting the increasing demand for EVs and plug-in hybrids worldwide. In Mexico alone, new car sales surged by 24% in 2023, with Chinese vehicles accounting for a significant portion of the market.
While the timeline for BYD’s Mexican factory remains uncertain, the company is forging ahead with its global expansion plans. It is set to open facilities in Thailand this year, with investments announced for plants in Brazil and Hungary in the near future.