BYD dismisses speculation on plant postponement, underscores commitment to Mexico

Chinese electric vehicle (EV) manufacturer BYD has denied media reports that it could follow in the footsteps of fellow EV maker Tesla and halt its plan to build a plant in Mexico until after the US elections.

Like many other companies, BYD is reportedly in wait-and-see mode, given the possibility of a shift in US trade policy under a new government, according to Bloomberg, which claimed the plans to build the plant could be either revived or altered, depending on the election result. 

The report stated that BYD was considering three locations to build its plant but has stopped its scouting efforts for now. One of the locations supposedly under review is Guadalajara, Jalisco state, which was visited by company executives in March. 

“We continue working to build a factory with the highest technological standards for the Mexican market, not for the United States market nor for the export market,” BYD’s regional chief for the Americas, Stella Li, said in a company release referring to the Bloomberg story. 

“For BYD the Mexican market is very relevant,” she added.

However, Li did not provide any further details on the location of the plant or a date to begin construction. 

Analysts believe that Chinese companies are waiting to see who will emerge victorious in the November election to decide whether it will be feasible to export to the US market from Mexico and if the USMCA revision due to take place in 2026 might also affect the situation. Republican candidate Donald Trump has said he intends to apply tariffs to imported products made in Mexico.

“Several of the Chinese companies first analyzed what was going to happen with the elections in Mexico, then they look at the electoral environment in the United States and what those elections in November show in order to make more long-term decisions. But what we've heard from many Chinese companies is that they want to locate in Mexico to take advantage of the vehicle market,” Kenneth Smith Ramos, who was the main negotiator for Mexico in the overhaul of the North American Free Trade Agreement that led to the signing of the USMCA deal, told BNamericas in June. 

BYD México’s CEO, Jorge Vallejo, has adamantly stated that the company is “100% focused on the Mexican market,” as he said in an interview with BNamericas in May. 

In July, Tesla paused its plan to build a US$5bn Gigafactory in Nuevo León state, close to the US border, according to an update call for investors where CEO Elon Musk announced the halt.