BYD Delays Plans to Build Major Car Plant in Mexico Over Geopolitical Tensions
BYD, a leading Chinese electric vehicle manufacturer, has decided to put its plans to construct a major factory in Mexico on hold due to escalating geopolitical tensions and uncertainties arising from the trade policies of former US President Donald Trump. This decision was reported by Bloomberg today.
Stella Li, the executive vice president of BYD, revealed in an interview in Bahia State, Brazil, that while the company is still keen on expanding its presence in the Americas, there is currently no set timeline for making any new investments in the region. Li emphasized the significant impact that geopolitical issues have on the automotive industry and stated, “We want to wait for more clarity before making our decision.”
Earlier in February 2024, Zou Zhou, the manager of BYD Mexico, had hinted at the possibility of establishing an electric vehicle (EV) factory in Mexico. However, a report by Bloomberg last September indicated that BYD had halted its search for potential factory locations in Mexico pending the outcome of the US presidential election.
In March of this year, the Financial Times reported that the Chinese government had delayed approving BYD’s Mexican factory due to concerns about the leakage of the company’s smart car technologies to the US. The government reportedly prioritizes projects in countries involved in its Belt and Road infrastructure development initiative.
Expanding Global Footprint
Despite the setbacks in Mexico, BYD has been actively expanding its global manufacturing footprint. The company’s passenger vehicle factory in Brazil recently commenced operations, marking BYD’s first such facility outside of Asia.
BYD already operates passenger vehicle factories in countries like Uzbekistan and Thailand, with plans for additional facilities in Hungary, Turkey, and Cambodia underway.
The inaugural model produced at BYD’s passenger car plant in Brazil is the Seagull, which has been rebranded as the Dolphin Mini for the local market.
