Chinese electric vehicle giant BYD is setting its sights on dominating the Mexican market. The company is aiming to sell a whopping 100,000 electric vehicles by 2025, despite potential roadblocks in the form of tariffs imposed by the US.
Jorge Vallejo, head of BYD’s Mexican operations, has announced plans to sell 50,000 EVs in the country this year, with the ambitious goal of doubling that number by 2025. BYD is also moving forward with plans for a new factory in Mexico, with the location set to be revealed by the end of the year. This facility is expected to initially produce 150,000 vehicles, with the potential for expansion to boost output by another 150,000 units.
These ambitious plans come at a time when the threat of hefty tariffs looms large. Former US President Donald Trump has vowed to impose a staggering 200% tariff on Chinese-made cars imported to Mexico if he wins the 2024 presidential election. BYD, which began importing vehicles to Mexico last year, is seeking an extension of tariff relief for its EV imports. Despite the looming threat, BYD remains optimistic about its expansion in the Mexican market.
BYD’s expansion plans in Mexico are part of a larger strategy to navigate global tariff challenges. Earlier this year, the company reportedly delayed significant investments in Mexico, waiting to see the outcome of the US elections. This cautious approach reflects the uncertainties posed by fluctuating American policies.
In July, Chinese EV manufacturers, including BYD, began exploring alternative markets like Africa due to increased tariffs from the EU and US. These protectionist measures have forced Chinese companies to diversify their market presence. Despite these hurdles, BYD has shown resilience, with analysts predicting a rebound in the Chinese EV market. BYD’s aggressive global expansion and new model launches are expected to sustain its growth momentum, highlighting the company’s strategic adaptability in the face of international trade challenges.
