BYD, the Chinese electric vehicle maker, has narrowed down its choices for the location of its new manufacturing plant in Mexico to three states. The firm’s country head, Jorge Vallejo, revealed that they are currently reviewing a variety of proposed incentives offered by these states. These incentives include fiscal benefits, land offerings, management assistance, and preferential pricing. Vallejo emphasized the importance of logistics and urban infrastructure when selecting a suitable location for the plant, stating that it involves more than just having the physical space.
The Mexican federal government, facing pressure from the U.S., has refrained from offering incentives to Chinese automakers like BYD. This stance has led the company to rely on incentives from the candidate states. While the specific states offering incentives were not disclosed, BYD’s Chief of Americas previously mentioned that the plant will be centrally located in Mexico. Among the contenders, Nuevo Leon stands out as an automotive hub, with Tesla and Volvo also considering production facilities in the state. Puebla, on the other hand, has a history of housing Volkswagen and BMW production plants.
Vallejo mentioned that BYD has not yet determined which models will be manufactured at the new plant in Mexico. The initial production capacity is set at 150,000 units, with plans to increase to 400,000-500,000 units in the future. This facility will cater primarily to the Mexican market, as BYD has no current intentions to enter the U.S. market. Additionally, BYD executives are scheduled to meet with Mexican officials to discuss their manufacturing and marketing strategies for the plant.
BYD’s plug-in hybrid SUV, the Song Pro, priced at 599,880 pesos, aims to facilitate the transition from traditional gasoline vehicles to fully battery-powered electric vehicles. This strategy has positioned Chinese automakers ahead of their Western counterparts in the EV market. The Song Pro’s competitive pricing and eco-friendly features are expected to appeal to environmentally conscious consumers in Mexico.
Overall, BYD’s journey to establish a manufacturing plant in Mexico reflects the company’s commitment to expanding its global presence and promoting sustainable transportation solutions. As the automotive industry shifts towards electric mobility, BYD’s innovative approach and strategic partnerships with local governments are instrumental in realizing its vision for a greener future.