Chinese electric vehicle maker BYD (BYD) is preparing an electric vehicle plant in Mexico. According to Reuters and other foreign media reports, BYD is considering setting up a new electric vehicle factory in Mexico, and on this basis, it will officially enter the United States and even the global market.
It is reported that with the depth of control of the whole industry chain, independent research and development capabilities, diverse product lineups, and ultra-high product strength, BYD has surpassed its biggest competitor Tesla and become the world's No. 1 electric vehicle manufacturer in terms of sales. 2024 is the year when BYD makes great strides into overseas markets. Europe, the United States, Japan and South Korea, these old countries, all have plans for BYD to enter.
A feasibility study of the plant in Mexico has already begun, and negotiations are underway with stakeholders on specific conditions, including the location of the plant.
In an interview with foreign media, the general manager of BYD Mexico said: "Overseas production is an indispensable and necessary factor for international brands. But he rejected the official statement of the branch.
Under the U.S.-Mexico-Canada Agreement (USMCA), companies that export electric vehicles to the U.S. can enjoy tax exemptions when purchasing more than 75% of their components in North America. It is for this reason that Tesla is building a gigafactory in Mexico.
In addition, major U.S. auto companies have warned that Chinese cars will bring disaster to themselves, and last month Tesla CEO Elon Musk said: "Chinese auto companies will end global competitors without ** barriers." ”
According to a report released by the United Group of American Manufacturers, "Chinese automobiles, which have received China's policy support and financial support, have grown rapidly and entered the U.S. market, which will eventually become a crisis event for the extinction of the U.S. auto industry." ”
In addition, BYD plans to invest 6. in a new industrial park in northeastern BrazilFor $200 million, the three plant parks will be built northeast of Ford's previously used site in Bahia.
There were other reasons to choose to build a factory in Mexico. Chinese automakers such as SAIC MG and Chery have already established vehicle manufacturing plants in Mexico. Mexico is the stronghold of the North American auto market, the world's seventh largest automobile producer and the fifth largest auto parts producer, with abundant metal minerals and human resources. According to statistics, Mexico is the second largest export destination for Chinese automobiles after Russia, with the number of finished vehicles exported reaching 3340,000 units. BYD officially entered the Mexican passenger car market in March 2023, and since then, it has successively launched models such as the Dolphin and the Seal.