BYD Is Planning A New Electric Vehicle Plant In Mexico
Is BYD aiming to build a new EV plant to keep up with higher demand?
The world’s most successful EV maker, BYD, will reportedly be setting up a new electric vehicle (EV) factory in Mexico, Nikkei reported not too long ago. In its report, Nikkei cited the company’s Mexico head, as the brand aims to establish an export hub to the United States. Let’s discuss it.
BYD is known for its cheaper models and a very diverse lineup of EVs and recently overtook its biggest rival Tesla, to become the world’s top EV maker in terms of sales. This includes both domestic sales and international exports but it is no secret that the brand has been struggling to keep up with customer demand. Is this the solution?
Moreover, according to the Nikkei report, BYD has launched a feasibility study for the Mexican plant and is currently negotiating with officials over terms, including the factory’s location. While BYD is mainly focused on China sales, it also aims to expand globally and is building new plants in addition to expanding Chinese exports.
Mexico’s massive automotive sector, populated by many of the industry’s top global players, is tightly integrated with the U.S. industry and BYD Mexico country manager Zhou Zou told Nikkei, “Overseas production is indispensable for an international brand.”
Major U.S. automakers have also warned that Chinese cars could spell doom for their own prospects, especially for the likes of Tesla which had been the dominant EV brand in all its markets until the last couple of years where BYD had been steadily growing globally.
A report by the group Alliance for American Manufacturing even said, “The introduction of cheap Chinese autos, which are so inexpensive because they are backed with the power and funding of the Chinese government, to the American market could end up being an extinction-level event for the U.S. auto sector.”
In Latin America, BYD plans to spend 3 billion reais (USD620 million or about RM2.96 billion) on a new industrial complex in northeastern Brazil. The three plant complex will be built in northeastern Bahia state, on land formerly occupied by a Ford plant that closed in 2021.
Well, now it seems that the inevitable global sales domination of BYD is just a few short years away. Other EV brands had better step up their game and fast, otherwise, BYD, which now has the facilities to keep up with demand, is going to likely put everyone else in a sales deficit all over the globe.
We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.
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