BYD Delays Major Mexico Plant Investment Until After US Election

 

BYD had been evaluating three potential locations in Mexico for its new plant but has temporarily halted its search. The company’s executives are waiting to see the outcome of the presidential race between former President Donald Trump and Vice-President Kamala Harris before making any further decisions. The pause in plans might be adjusted depending on the election results, and no final decision has been made yet.

The areas under consideration included the region around Guadalajara, which has become known as Mexico’s Silicon Valley due to its growing technology sector. BYD had previously sent a delegation to this area and had also engaged with local events, including the Formula E Mexico City E-Prix.

In addition to BYD, Mexico has seen a surge in automotive investment from both Chinese and Western manufacturers. Tesla, for example, had announced plans for a major factory in northern Nuevo Leon but put those plans on hold in July, citing the uncertain political climate. The potential tariffs from a Trump administration, who has endorsed Tesla CEO Elon Musk, have contributed to this hesitation.

Mexico remains an attractive location for foreign automakers due to its proximity to the US and its participation in the North American free trade agreement with the US and Canada. However, the US plans to impose a 100% tariff on Chinese electric vehicles, a move intended to support American manufacturing.

BYD, which is also expanding production in Brazil, Hungary, Turkey, and Thailand, views Mexico as a strategic site for future growth. The company’s goal is to localize production to avoid tariffs and potentially export affordable electric vehicles to the US market.

BYD’s executive vice-president, Stella Li, mentioned plans to meet with Mexico’s incoming President Claudia Sheinbaum, who will take office on October 1. The company continues to explore its options for the new factory, with a decision expected to follow the US election.