Chinese Automaker BYD Considering EV Assembly Plant in Mexico

Chinese manufacturer BYD (Build Your Dreams) is considering building an assembly plant in Mexico. This is according to Japanese daily Nikkei. The manufacturer is obviously keen to establish itself in this region to be able to attack the American market more easily.

Recall that vehicles built in China are subject to high tariffs (27.5 percent), making it impossible to market them in the U.S. Manufacturing vehicles in Mexico would let it bypass those tariffs.

BYD is renowned for its more affordable models. The company might not have much of a presence in North America, but it has overtaken Tesla in terms of EV sales. Those sales are, of course, concentrated in China.

According to Nikkei, BYD is studying the possibility of setting up a plant in Mexico and is negotiating with authorities there on the terms, conditions and location of an eventual factory.

BYD has global ambitions, and Mexico represents a golden opportunity because of its natural integration with the American market. Many manufacturers have plants there, including General Motors and Volkswagen.

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