China's BYD will set up a new electric vehicle (EV) factory in Mexico, Nikkei reported on Wednesday, citing the company's Mexico head, as the EV maker aims to establish an export hub to the US.
BYD, known for its cheaper models and a more varied line-up, recently overtook its biggest rival Tesla to become the world's top EV maker in terms of sales.
According to the Nikkei report, BYD has launched a feasibility study for the Mexican plant and is negotiating with officials over terms, including the factory's location.
While BYD has its sales concentrated in China, it also aims to expand globally and is building new plants overseas in addition to expanding Chinese exports.
Mexico's huge car-making sector, populated by many of the industry's top global players, is tightly integrated with the US industry.
“Overseas production is indispensable for an international brand”, BYD Mexico country manager Zhou Zou told Nikkei.
The carmaker's Mexico office declined to comment.
Major US automakers have warned Chinese cars could spell doom for their own prospects, among them Elon Musk's Tesla.
Last month, Tesla's CEO predicted Chinese automakers will “demolish” global rivals without trade barriers.
Musk's view is echoed by a leading advocacy group.
“The introduction of cheap Chinese autos, which are so inexpensive because they are backed with the power and funding of the Chinese government, to the American market could end up being an extinction-level event for the US auto sector,” according to a forthcoming report by the group Alliance for American Manufacturing.
In Latin America, BYD plans to spend 3bn reais (R11.6bn) on a new industrial complex in northeastern Brazil.
The three plant complex will be built in northeastern Bahia state on land formerly occupied by a Ford plant that closed in 2021.
BYD planning to build new EV plant in Mexico
Image: eon Neal/Getty Images
China's BYD will set up a new electric vehicle (EV) factory in Mexico, Nikkei reported on Wednesday, citing the company's Mexico head, as the EV maker aims to establish an export hub to the US.
BYD, known for its cheaper models and a more varied line-up, recently overtook its biggest rival Tesla to become the world's top EV maker in terms of sales.
According to the Nikkei report, BYD has launched a feasibility study for the Mexican plant and is negotiating with officials over terms, including the factory's location.
While BYD has its sales concentrated in China, it also aims to expand globally and is building new plants overseas in addition to expanding Chinese exports.
Mexico's huge car-making sector, populated by many of the industry's top global players, is tightly integrated with the US industry.
“Overseas production is indispensable for an international brand”, BYD Mexico country manager Zhou Zou told Nikkei.
The carmaker's Mexico office declined to comment.
Major US automakers have warned Chinese cars could spell doom for their own prospects, among them Elon Musk's Tesla.
Last month, Tesla's CEO predicted Chinese automakers will “demolish” global rivals without trade barriers.
Musk's view is echoed by a leading advocacy group.
“The introduction of cheap Chinese autos, which are so inexpensive because they are backed with the power and funding of the Chinese government, to the American market could end up being an extinction-level event for the US auto sector,” according to a forthcoming report by the group Alliance for American Manufacturing.
In Latin America, BYD plans to spend 3bn reais (R11.6bn) on a new industrial complex in northeastern Brazil.
The three plant complex will be built in northeastern Bahia state on land formerly occupied by a Ford plant that closed in 2021.
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