BYD Narrows Down Three Finalists for Mexican EV Manufacturing Plant

Chinese electric vehicle manufacturer BYD is close to deciding the location for its new manufacturing plant in Mexico, narrowing down to three states. The company is reviewing incentives offered by these states, including fiscal benefits and land. The plant is expected to produce up to 500,000 EV units in a few years.

Chinese electric vehicle manufacturer BYD is nearing a final decision on where to establish its new manufacturing plant in Mexico, with three states in contention. The company's Mexico head, Jorge Vallejo, revealed that they are reviewing various proposed incentives, which include fiscal benefits, land, management, and preferential pricing.

Vallejo emphasized that it's not just about selecting a location but also ensuring the necessary logistics and infrastructure like water and gas are in place. The aim is to finalize the location by the end of the year. BYD has stated that the new plant will serve the Mexican market exclusively and is set to produce up to 500,000 units over time.

The federal government of Mexico, influenced by pressure from the U.S., has refrained from offering incentives such as low-cost public land or tax cuts to Chinese automakers for EV production. Meanwhile, BYD's new facility will be pivotal in their strategy to bolster EV production and further bridge the transition from gas to fully battery-powered vehicles.

(With inputs from agencies.)