BYD Narrows Down Mexican Manufacturing Sites Amid Competitive Incentives

BYD, a Chinese electric vehicle manufacturer, has shortlisted three Mexican states for a new plant considering various incentives. The plant aims to produce up to 500,000 units and cater to the Mexican market. Discussions with Mexican officials are underway to finalize the location by year-end.

BYD, the Chinese electric vehicle maker, has narrowed its list of finalists for the location of a manufacturing plant in Mexico to three states. The company's Mexico director general, Jorge Vallejo, revealed to Reuters on Wednesday that the firm is evaluating various incentives offered by these states, including fiscal advantages, land, management, and preferential pricing.

"A plant is not only about having the space, but the logistics, urban development, infrastructure, water, and gas, everything needed for an automotive plant," Vallejo explained. The goal is to finalize the location by the end of the year, he added.

Under pressure from the U.S., Mexico's federal government has not offered incentives like low-cost public land or tax cuts to Chinese automakers. Although Mexico's northern state, Nuevo Leon, is an automotive hub and central Puebla state has production facilities by Volkswagen, Vallejo did not disclose the states offering the incentives.

Speaking after the unveiling of BYD's Song Pro plug-in hybrid SUV in Mexico, Vallejo mentioned that the Mexico plant would produce between 150,000 and 500,000 units in several stages. The plant will focus on the Mexican market, and BYD executives plan to discuss the manufacturing and marketing plans with Mexican President-elect Claudia Sheinbaum and the economy ministry soon.

(With inputs from agencies.)