The Chinese electric vehicle manufacturer, BYD, has been actively seeking a location in Mexico to establish a new manufacturing plant. According to the firm’s country head, Jorge Vallejo, BYD has narrowed down its list of potential states to three and is currently evaluating various incentives being offered by each state. These incentives may include fiscal benefits, land allotments, management assistance, and preferential pricing options. Vallejo emphasized the importance of not only having the physical space for the plant but also considering logistics, urban infrastructure development, and access to essential resources such as water and gas.
Despite the benefits being proposed by the candidate states, Mexico’s federal government has been hesitant to provide incentives to Chinese automakers due to pressure from the United States. Mexican officials have been reluctant to offer low-cost public land or tax cuts for electric vehicle production investments. This stance has created some challenges for BYD as it navigates the decision-making process for selecting a location. However, the company’s Chief of Americas, Stella Li, has reassured that the plant will be centrally located within Mexico.
Mexico’s automotive industry is well-established, with states like Nuevo Leon and Puebla serving as key hubs for major automakers like Tesla, Volvo, Volkswagen, and BMW. These states offer a wealth of experience and resources in automotive production, making them attractive options for BYD’s new plant. Vallejo mentioned that the specifics of which models will be manufactured in Mexico have not been finalized yet. However, the plant is expected to produce a significant number of units in its initial stages and ramp up production over the coming years.
In an effort to solidify its presence in Mexico, BYD executives are planning to meet with the team of Mexico’s President-elect, Claudia Sheinbaum, and the economy ministry to discuss their plans for the plant. Vallejo indicated that the company will outline its manufacturing and marketing strategies during these discussions. The goal is to showcase BYD’s capabilities and emphasize its commitment to the Mexican market. While the company has stated that it is not currently targeting the U.S. market, its focus on expanding operations in Mexico is clear.
BYD’s latest offering, the plug-in Song Pro SUV, is priced competitively at 599,880 pesos ($31,146.42) and is designed to accelerate the transition from traditional gasoline-powered vehicles to fully battery-operated EVs. Chinese automakers have been leading the charge in this technological shift, outpacing many Western counterparts in the process. The introduction of the Song Pro in Mexico is a strategic move by BYD to further cement its position in the electric vehicle market and cater to the evolving consumer preferences in the region.
The decision by BYD to establish a manufacturing plant in Mexico represents a significant step towards strengthening its presence in the region and expanding its production capabilities. Despite the challenges posed by governmental policies and market dynamics, the company’s strategic approach and commitment to innovation position it well for success in the evolving automotive landscape. With the support of key stakeholders and a clear focus on meeting consumer demand for electric vehicles, BYD is poised to make a lasting impact on the Mexican automotive industry.