Chinese electric vehicle giant BYD Co., Ltd. (BYDDY, BYDDF) is getting closer to establishing a new manufacturing plant in Mexico. The company has reportedly narrowed down its shortlist of potential locations to three states, and is now in the process of evaluating incentive packages from each.
Jorge Vallejo, BYD’s Mexico Director General, confirmed that the company is carefully considering the latest proposals. These proposals include a range of benefits such as financial incentives, land allocation, management support, and preferential pricing.
Vallejo emphasized the importance of the surrounding infrastructure, stating, “A plant is not only about having the space, but the logistics, all the development, urban infrastructure that is generated, water, gas, everything that is needed for an automotive plant.”
While Mexico’s federal government is reportedly holding back on offering incentives like low-cost land or tax cuts to Chinese automakers, BYD is moving forward with its plans. BYD Chief of Americas Stella Li had previously indicated in May that the plant would be centrally located in Mexico.
Although BYD has not yet announced which models will be produced at the new facility, it will initially have a production capacity of 150,000 units. This will be followed by a second phase that will increase capacity by another 150,000 units, eventually reaching a total of 400,000 to 500,000 units within a few years.
While BYD’s plant will initially cater to the Mexican market, Vallejo has stated that there are no current plans to enter the U.S. market.
The establishment of a BYD plant in Mexico marks a significant move for the company as it expands its global presence and continues to invest in the electric vehicle market. The company’s decision to focus on Mexico, despite challenges from the Mexican government, highlights the attractive potential of the region for EV production.
