BYD Reconsiders Plans to Build Manufacturing Plant in Mexico

BYD’s Renewed Interest in Mexico

Four months after announcing the cancellation of its plans to build a manufacturing plant in Mexico, the Chinese electric vehicle and battery manufacturer Build Your Dreams (BYD) is now reportedly reconsidering its decision.

Lithium Battery Production Advantage

Julián Villarroel, vicepresidente corporativo de BYD, told reporters at Expo Transporte ANPACT 2025 in Guadalajara that the company’s renewed interest is due to being the only electric vehicle (EV) manufacturer that produces its own lithium batteries.

“We are the world’s largest manufacturer of lithium batteries,” Villarroel said. “This integration allows us to offer competitive prices.”

Exemption from Tariffs

As part of the decision-making process, BYD is lobbying Mexican lawmakers to exempt electric vehicles from a 50% import tariff on countries without trade agreements with Mexico.

Villarroel argued that electric vehicles should not be subject to tariffs due to their positive impact on pollution.

BYD’s Commitment to Mexico

BYD insists that it is committed to staying in Mexico and Brazil, describing them as key markets for their expansion in the EV sector in Latin America.

The company is expected to issue an official statement by the end of the year, reaffirming its intention to remain in Mexico and expand its presence in Latin America.

Rumors of Acquiring Nissan Plant

Rumors suggest that BYD might be interested in acquiring the Nissan plant in Cuernavaca, which is set to close in March.

BYD’s Presence in North America and Latin America

BYD’s only North American plant is in Lancaster, California, producing buses, while its plant in Camaçari, Brazil, serves the Latin American market.

Chinese rivals Changan and MG have also expressed interest in establishing operations in Mexico.

Expansion Plans

Villarroel announced at the trade show in Guadalajara the launch of the company’s new cargo vans for last-mile delivery, with the goal of selling 1,200 units by the end of the year and targeting 5,000 units next year.

Update on Brands Ownership

Editor’s note: MG, previously referred to as a British brand, is now owned by the Chinese company SAIC and headquartered in Shanghai.

Key Takeaways:

• BYD is reconsidering its decision to build a manufacturing plant in Mexico.
• The company’s interest is driven by its advantage as the largest lithium battery manufacturer in the world.
• BYD is lobbying for exemptions from tariffs on electric vehicles in Mexico.
• BYD reaffirms its commitment to Mexico and Brazil as key markets for EV expansion in Latin America.