BYD first announced plans for a car plant in Mexico in 2023, along with intentions to make cars in Brazil, Hungary and Indonesia. It said the Mexican plant would create 10,000 jobs and produce 150,000 vehicles a year.
Authorities feared Mexico would gain unrestricted access to BYD’s advanced technology and knowhow, they said, even possibly allowing US access to it. “The commerce ministry’s biggest concern is Mexico’s proximity to the US,” said one of the people.
Beijing is also giving preference to projects in countries that are part of China’s Belt and Road infrastructure development programme, according to the people.
Trump’s team has accused Mexico of being a “back door” for Chinese goods to enter the US duty-free through the USMCA. The Mexican government denies this but has responded to US pressure by placing tariffs on Chinese textiles and launching anti-dumping investigations into steel and aluminium products originating from China.
“Mexico’s new government has taken a hostile attitude towards Chinese companies, making the situation even more challenging for BYD,” said the second person.
In November, shortly after Trump’s re-election, Mexico’s President Claudia Sheinbaum said there was still no “firm” investment proposal from any Chinese company to set up in Mexico, despite BYD having reaffirmed its intent to invest $1bn earlier that month.
“The Mexican government obviously would like to get some of the investments [from China], but [its] trading relationship with the US is a lot more important,” said Gregor Sebastian, a senior analyst at US-based consultancy Rhodium Group.
It doesn’t “make business sense” for BYD to hasten the construction of a production facility in Mexico at the moment, Sebastian added, pointing out that the lack of a robust automotive supply chain would force BYD to import numerous components from China, subjecting them to higher tariffs.
In February last year, Li had said it would select a location for the factory by the end of 2024.
BYD reported sales of more than 40,000 vehicles in Mexico last year. It has said it wants to double sales volume and open 30 new dealerships in the country in 2025.
BYD sold 4.3mn EVs and hybrids globally in 2024 and unveiled its “God’s Eye” advanced driving system in February, with plans to install it on its entire model line-up.
Earlier this month, Tesla’s main rival raised $5.6bn in a Hong Kong share sale, with the proceeds expected to help fuel its overseas expansion.
But it has suffered a setback with its $1bn development in Brazil, which was delayed in December when the authorities halted construction over workers being subject to “slavery”-like conditions. BYD subsequently fired a Chinese subcontractor.
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Nah no need to fear, US would intentionally not use any of them just to own the libs. If they won’t copy good city building, there’s nothing to fear.
Sad, but true.
Not Just Bikes informed many about city planning.