Chinese car brand BYD is all set for Mexico

File photo of BYD Dolphin EV on display in Bangkok.  Reuters.

File photo of BYD Dolphin EV on display in Bangkok. Reuters.

It is clear that Chinese electric car manufacturer BYD wants to bet big on Mexico. He has just announced two pieces of news that leave no room for doubt. On one hand, it will start selling its Dolphin Mini Electric Vehicle (EV) in the country. On the other hand, he admitted to Reuters that he is already looking for a location to set up a factory with the aim of boosting the company’s sales in the local market.

This brand may be new to many people, but we are talking about it for now One of the fastest growing companies in the international automobile sectorElectric vehicles are sure to dominate the market in the coming years.

In fact, BYD overtook American Tesla for the first time in electric vehicle sales during the last quarter of 2023, indicating China’s growing power in the global market for this type of transportation.

Nevertheless, Tesla remained ahead of BYD throughout the year and delivered about 1.81 million electric vehicles to its customers worldwide. But the Chinese brand was not far off with 1.6 million.

BYD America's Executive Vice President and CEO Stella Lee poses for a photo during an event where the Chinese electric vehicle maker announced the launch of the Dolphin Mini low-cost electric vehicle in Mexico City, Mexico, on March 28, 2024.  Reuters/Toya Sarno JordanBYD America's Executive Vice President and CEO Stella Lee poses for a photo during an event where the Chinese electric vehicle maker announced the launch of the Dolphin Mini low-cost electric vehicle in Mexico City, Mexico, on March 28, 2024.  Reuters/Toya Sarno Jordan

Stella Lee, Executive Vice President and CEO of BYD Americas, poses for a photo during an event where the Chinese electric vehicle maker announced the launch of the Dolphin Mini low-cost electric vehicle in Mexico City, Mexico, on March 28, 2024. Reuters/Toya Sarno Jordan (Reuters/Reuters)

Interest in Mexico… but also in the United States

BYD has acknowledged that it is in the process of choosing a location in Mexico for the plant, which is planned Capacity of 150,000 cars per year, And he hopes that a decision will be taken by the end of the year.

Directors of the Chinese company have already held meetings with officials from various Mexican states.

Building a plant in Mexico not only addresses the growing interest in the local market, but can also be useful for the country Gateway to the United States and CanadaWhich truly strengthens the company’s quest to become a household name across the globe.

As reported on CNN, experts say expansion into Mexico would help the Shenzhen-based company avoid hefty tariffs as well as gain a foothold on the American continent. The plans could also help BYD deal with the tough geopolitical environment and protectionism, as voices warning of the arrival of an “avalanche” of Chinese electric vehicles are already emerging.

But those who have followed the BYD company for a long time, a brand that was once relatively unknown overseas and was even ridiculed by Tesla CEO Elon Musk in 2011, say the anticipated The steps are not just a response to rising protectionism, but They are part of a global expansion plan.

BYD currently does not sell passenger vehicles in the United States, where Chinese-made cars face a high import duty of 27.5%. That could soon change if the automaker sets up production in Mexico, where it sells buses and cars.

Under the United States–Mexico–Canada Agreement (USMCA), the trade agreement that replaced NAFTA in 2020, 75% of every passenger vehicle must be manufactured in North America to avoid tariffs.

Since Mexico is part of this agreement, it has become more attractive to Chinese automakers, as the country is somewhat Backdoor access to the US market,

Apart from this there are other benefits like Low labor and transportation costs, Mexico is considered a solid base for BYD as Tesla is building a plant in the country. The American automaker is now one of BYD’s battery customers. Additionally, they want to sell batteries in the Latin American market.

BYD EV Dolphin Mini is pictured as the Chinese electric vehicle maker announced the launch of a low-cost electric vehicle on February 28, 2024 in Mexico City, Mexico.  Reuters/Toya Sarno JordanBYD EV Dolphin Mini is pictured as the Chinese electric vehicle maker announced the launch of a low-cost electric vehicle on February 28, 2024 in Mexico City, Mexico.  Reuters/Toya Sarno Jordan

BYD EV Dolphin Mini is pictured as the Chinese electric vehicle maker announced the launch of a low-cost electric vehicle on February 28, 2024 in Mexico City, Mexico. Reuters/Toya Sarno Jordan (Reuters/Reuters)

A new model for Mexico

Company officials also announced this week that BYD will begin selling its Dolphin mini electric vehicle (EV) in Mexico at a starting price of 358,800 pesos ($20,990).

BYD America general director Stella Lee commented at a launch event in Mexico City that the car aims to combine technology and price within the reach of Mexican consumers.

He said, “It is economical (…) so that every Mexican can take home their first electric car.”

The Dolphin Mini is available in two versions: the standard one, with a 30 kWh battery and a range of 300 kilometers per charge, priced at 358,800 pesos; and the Plus version, equipped with a 38 kWh battery that offers extended autonomy 380 kilometersWith a price of 398,800 pesos.

Regarding charging options, the model offers two modes: alternating current and direct current. Using a standard wall charger, the charging time ranges from 6 to 8 hours, while with a fast charging station, Fully charged in just one hour,

Note prepared from information received from Reuters and CNN.

You may also be interested. on video: Why BYD could snatch the throne from Tesla in electric vehicle sales?

(TagstoTranslate)Mexico City

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