Chinese automaker BYD has moved outside of its home market in recent years, rapidly expanding to other parts of the world as it aims to grow its business and become the world’s top-selling such company. As Ford Authority reported back in February, part of that plan includes Mexico as the potential site for a future North American production plant, which could be used as an export hub for the U.S. automotive market. However, it now looks like BYD may wait a bit longer to finalize those plans.
According to a new report from Bloomberg, BYD now plans to wait until after the 2024 U.S. Presidential election to announce its investment in a future Mexican plant, given the fact that the country remains in a bit of a flux in terms of its future policies. BYD was previously scouting three locations for its future plant in that country, but has stopped its active search temporarily as it waits to see who wins the election, which could prompt it to alter those plans or even cancel them altogether.
Former President Donald Trump has discussed imposing stricter tariffs on models imported from Mexico into the U.S., while the Biden Administration is said to be monitoring that situation as well as it mulls final rules regarding increased tariffs on Chinese EVs and raw materials.
Though BYD has stated that any vehicles it builds in Mexico would be destined for that local market only, it could also be a way for the automaker to avoid higher tariffs imposed on models built in China and exported to other areas, including the U.S., given the fact that Mexico is part of a North American free trade agreement with that country and Canada – where BYD is also actively looking to enter the market. Ford has made it quite clear that it views Chinese EVs like the ones made by BYD as threats to both its business and potentially national security, though models like the sub-$10k Seagull are already headed to places like Europe. Interestingly, however, Ford sold one of its shuttered Brazilian plants to BYD just last year, too.
We’ll have more on BYD and all of Ford’s Chinese competitors soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.
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