The Chinese vehicle manufacturer BYD has halted any investment in the plant it plans to build in Mexico until at least after the U.S. presidential elections in November, as a potential shift in U.S. trade policy could alter company timelines.
BYD had been exploring the construction of a plant at three possible locations in the North American country for local car production.
One of the areas being considered was the city of Guadalajara, where several technology companies have established themselves over the last decade.
In March, the Chinese group even sent a delegation to inspect the site.
Stella Li, BYD’s executive vice president, also visited Mexico City in February during the launch event of the automaker’s Dolphin Mini model, while senior management met in a BYD-sponsored box at the Mexico City E-Prix Formula E event in January.
This decision by BYD aligns with a similar strategy adopted in July by another electric vehicle manufacturer, in this case, the American company Tesla, which paused the construction of its gigafactory awaiting the election results in the neighbouring country.
At the time, Tesla announced various plans to build a plant in the northern state of Nuevo León with an estimated investment of up to ten billion dollars in several phases.
Mexico could become one of BYD’s key production hubs abroad, along with the plants it is currently building or already operates in Brazil, Hungary, Turkey, and Thailand.
For now, BYD has stated that vehicles manufactured in Mexico will be for local consumption, although the free trade agreement with the United States and Canada emerges as a commercial strategy in response to Washington’s imposition of tariffs on electric vehicle imports.
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