BYD Halts Plans for Mexico EV Factory Amid Geopolitical Concerns

4 Jul 2025 1 min read No comments News

BYD, the world’s largest electric vehicle manufacturer, has officially canceled its planned manufacturing facility in Mexico. The decision was influenced by geopolitical tensions and uncertainty over U.S. tariff policies under President Donald Trump’s administration.

The Chinese company had originally announced plans in 2023 to establish a production plant in Mexico that would have produced approximately 150,000 vehicles annually, creating 10,000 jobs. This facility was intended to serve the Mexican and Latin American markets, with potential future exports to the United States.

Reasons for Cancellation

  • Geopolitical issues affecting the automotive industry, as mentioned by BYD Executive Vice President Stella Li.
  • Waiting for more clarity in the geopolitical environment before making further decisions.
  • Indefinite postponement of the Mexican plant plans, despite previous intentions to proceed regardless of U.S. election outcomes.

The company still expresses interest in expanding throughout the Americas but has not established a new timeline for investment.

Earlier this year, Mexico’s President Claudia Sheinbaum noted that BYD had not submitted a formal investment proposal. Reports from the Financial Times suggested that China’s Ministry of Commerce expressed concerns about sharing BYD’s smart car technology with the United States, which may have influenced the hesitation in approving the investment in Mexico.

Despite these challenges, BYD continues its international expansion through other channels, including the opening of its first factory outside Asia in Brazil’s Bahia state.

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