Chinese electric vehicle giant BYD is inching closer to establishing a manufacturing plant in Mexico. The company has narrowed its list of potential locations to three states and is currently reviewing the incentives offered by each.
Jorge Vallejo, BYD’s Mexico director general, confirmed that the company is carefully evaluating the latest proposals from the candidate states, which have presented “numerous benefits” including fiscal incentives, land allocation, management support, and preferential pricing. He emphasized that the plant’s location is contingent on various factors, including logistics, infrastructure, and resource availability.
“A plant is not only about having the space, but the logistics, all the development, urban infrastructure that is generated, water, gas, everything that is needed for an automotive plant,” Vallejo stated. “There are many elements, even logistical, that we are analyzing together with them.”
While the Mexican government has been cautious about offering significant incentives to Chinese automakers due to US pressure, BYD’s Mexico head revealed that the company is considering proposals from three states. Although he didn’t disclose the specific names, BYD Chief of Americas Stella Li previously indicated that the plant would be centrally located within the country.
Key contenders for the plant’s location include:
- Nuevo Leon: A prominent automotive hub and the site of Tesla’s proposed mega-factory.
- Puebla: Home to Volkswagen’s production facilities.
- San Luis Potosi: Where BMW manufactures electric vehicles.
BYD has not yet finalized which models will be produced at the Mexico plant, but the company anticipates producing 150,000 units in the first stage and an additional 150,000 units in the second stage. The plant aims to eventually reach a production capacity of between 400,000 and 500,000 units annually.
The plant will primarily serve the Mexican market, and BYD has reiterated its current stance of not entering the US market.
As BYD continues its expansion plans in Mexico, the company is seeking to meet with the incoming administration of President-elect Claudia Sheinbaum and the economy ministry to discuss its manufacturing and marketing strategies.
Meanwhile, another major automaker, Stellantis, has recently started EV production at its plant in the State of Mexico. This development underscores the growing momentum of electric vehicle manufacturing in the country.
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