China’s BYD pauses Mexico factory plans until after US election

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Mexico could be a key production site for BYD, along with plants it is building or already operating in Brazil, Hungary, Turkey and Thailand

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BYD electric cars wait to be loaded onto a ship at Taicang Port in Suzhou, in China’s eastern Jiangsu province on February 8, 2024. Photo: AFP

Bloomberg

Published: 10:53am, 4 Sep 2024

China’s top electric-vehicle maker BYD will not announce a major plant investment in Mexico until at least after the US election, according to people familiar with the matter, as shifting American policy forces global businesses into wait-and-see mode.

BYD was scouting three locations for a car production facility in Mexico but has stopped actively looking for now, several of the people said, asking not to be identified discussing information that is private.

The postponement is largely because BYD would prefer to wait and see the outcome of the race between former US president Donald Trump and vice-president Kamala Harris in early November, the people said. They added that BYD’s paused factory plans may still be revived or could change, and no final decision has been made.

BYD said in a statement to Bloomberg that it “has not postponed a decision on a factory in Mexico”.

“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,” the company said in a statement attributed to executive vice-president Stella Li. “For BYD, the Mexican market is very relevant.”